Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 17 - Rebates  

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Subdivision AB - Lump sum payments in arrears  

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SECTION 159ZRC  

159ZRC   NOTIONAL TAX AMOUNT FOR RECENT ACCRUAL YEARS  

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The notional tax amount for a recent accrual year is calculated in accordance with the formula:


Tax on increased income   −   Tax on actual income

where:

Tax on increased income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows:

  • (a) the annual arrears amount for the accrual year is to be added;
  • (b) if the accrual year is also a rebate year - the total arrears amount for the accrual year is to be deducted; and
  • (c) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year - the amount that so accrued during the accrual year is to be added;

    • Tax on actual income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows (if applicable):

  • (d) if the accrual year is also a rebate year - the total arrears amount for the accrual year is to be deducted; and
  • (e) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year - the amount that so accrued during the accrual year is to be added.

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