INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
View history note
Hide history noteFor the purposes of this Part, a person pays a PAYG instalment or company tax if and only if:
(a) the person has a liability to pay the instalment or the company tax; and
(b) either:
(i) the person makes a payment to satisfy the liability (in whole or in part); or
(ii) a credit, or an RBA surplus, is applied to discharge or reduce the liability.
Note:
The requirement in paragraph (a) means that the company cannot generate franking credits by making a ``voluntary'' payment of company tax (that is, paying an amount on account of company tax for which the company is not liable at the time when the payment is made).
160APBB(2) [Certain allowable credits]Subparagraph (1)(b)(ii) does not apply to the application of a credit allowable under or by virtue of:
(a) Division 18, 18A or 18B of Part III; or
(b) the International Tax Agreements Act 1953 ; or
(c) section 45-30 , 45-215 or 45-420 in Schedule 1 to the Taxation Administration Act 1953 .
The amount of the PAYG instalment or company tax paid is equal to:
(a) the amount of the liability if it is satisfied in full; or
(b) the amount by which the liability is reduced if it is not satisfied in full. 160APBB(4) [Reduction by amount of excess]
(a) a surplus in an RBA of a company is applied to satisfy a liability of the company to pay a PAYG instalment in respect of a year of income; and
(b) a credit allowable under section 45-30 in Schedule 1 to the Taxation Administration Act 1953 in respect of that year of income is included in the RBA; and
(c) the RBA does not include the liability to pay the PAYG instalment; and
(d) the amount of the credit exceeds the company tax assessed to the company in respect of that year of income;
the amount of the PAYG instalment paid by virtue of the application of the surplus is reduced by the amount of the excess referred to in paragraph (d).
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
