INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1B - Collection of tax on companies and trustees of certain funds  

SECTION 221AW   POWER OF COMMISSIONER TO VARY ESTIMATE OF INCOME TAX  

221AW(1)   [Determination by Commissioner]  

Subject to this section, if:

(a) a relevant entity has given a notice under paragraph 221AQ(1)(a) in respect of a year of income; and

(b) the Commissioner has reason to believe that the amount of income tax that will be payable by the entity in respect of its taxable income of that year of income will be greater or less than the amount of the estimate or of a revised estimate, as the case may be, of that income tax made by the entity under this Division;

the Commissioner may, for the purposes of section 221AQ , determine that such amount as the Commissioner thinks appropriate is to be substituted for the amount of that estimate or revised estimate.

221AW(2)   [Effect of determination]  

A determination under subsection (1) in relation to a relevant entity in respect of a year of income is of no effect if it would result in the amount of the initial payment of tax that is required to be made by the entity in respect of its taxable income of that year of income being increased to an amount exceeding 85% of the entity's notional tax in respect of that year of income.

221AW(3)   [Notice to relevant entity]  

Where the Commissioner makes a determination under subsection (1), the Commissioner must cause a written notice to be served on the relevant entity specifying:

(a) the amount that, by virtue of the determination, is to be substituted for the amount of the entity's estimate or revised estimate of the income tax that will be payable in respect of its taxable income of the year of income to which the determination relates and the basis on which the determination was made; and

(b) the date on which the determination takes effect, being a date not less than 30 days after the date of service of the notice.

221AW(4)   [Payment of additional amount]  

Any additional amount that, because of a determination under subsection (1), is payable by a relevant entity in respect of the initial payment of tax that the entity is required to make under section 221AP in respect of its taxable income of the year of income to which the determination relates is payable not later than the date on which the determination takes effect.

221AW(5)   [Refund by Commissioner]  

Where a relevant entity has made an initial payment of tax in respect of its taxable income of a year of income and, because of a determination under subsection (1):

(a) the amount of the payment exceeded the amount that the entity was required to pay; or

(b) the entity was not required to make the payment;

the Commissioner must, as soon as practicable, refund to the entity the excess or the amount of the payment, as the case may be.