INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1A - Collection by instalments of tax on companies in respect of years of income before the year of income ending on 30 June 1990  

SECTION 221AI   APPLICATION OF PAYMENTS OF INSTALMENTS OF TAX  

221AI(1)   [Instalment reduced after payment]  

Where -

(a) a company has been served, in accordance with subsection 221AF(1) , with a notice specifying an amount payable as an instalment of tax in respect of its income of a year of income;

(b) the company has been served, in accordance with subsection 221AH(1) , with a further notice specifying a reduced amount as the amount of the instalment; and

(c) the company has paid, in respect of the instalment, an amount exceeding -

(i) in a case to which subparagraph (ii) does not apply - the reduced amount; or

(ii) if the company has been served in accordance with subsection 221AH(2) with a further notice specifying an amount of an increase in that instalment - the sum of the reduced amount and the amount of the increase,

the Commissioner shall credit the amount of the excess in payment successively of -

(d) any income tax due and payable by the company in respect of its taxable income of that year of income;

(e) any amount payable by the company as any other instalment of tax in respect of its income of the year of income whether or not that amount is due for payment; and

(f) any other income tax or any withholding tax payable by the company whether or not that income tax or withholding tax is due for payment,

and is liable to refund to the company so much of the excess as is not so credited.

221AI(2)   [Excess of instalment over assessed tax]  

Where a company has paid the whole or a part of an instalment of tax in respect of its income of a year of income and:

(a) an assessment has been made of the amount of income tax payable by the company in respect of its taxable income of that year of income; or

(b) the Commissioner is satisfied that no income tax will be payable by the company in respect of its taxable income, if any, of that year of income,

the Commissioner shall credit the amount (in this subsection referred to as the ``residual amount'' ) remaining after deducting from the amount so paid by the company any part of the amount so paid that has been, or is required to be, credited or refunded in accordance with subsection (1) in payment successively of:

(c) any income tax payable by the company in respect of that taxable income whether or not that income tax is due for payment; and

(d) any other income tax or any withholding tax payable by the company whether or not that income tax or withholding tax is due for payment;

and is liable to refund to the company so much of the residual amount as is not so credited.