INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1C - Payment of instalments by companies and certain trustees  

Subdivision B - General rules for payment of instalments  

SECTION 221AZK   LIABILITY TO PAY INSTALMENTS  

221AZK(1)   [Instalment taxpayers]  

The following taxpayers are instalment taxpayers in relation to a year of income ( ``the current year'' ):

(a) a company;

(b) the trustee of a trust that is a corporate unit trust in relation to the current year for the purposes of Division 6B of Part III ;

(c) the trustee of a trust that is a public trading trust in relation to the current year for the purposes of Division 6C of Part III ;

(d) the trustee of a fund that is an eligible ADF (as defined in section 267 ) in relation to the current year;

(e) the trustee of a fund that is an eligible superannuation fund (as defined in section 267 ) in relation to the current year;

(f) the trustee of a fund that is a pooled superannuation trust (as defined in section 267 ) in relation to the current year.

221AZK(2)   [Table]  

Subject to subsection (3A) of this section and to sections 221AZJA , 221AZKB , 221AZKC , 221AZKEA and 221AZKE , an instalment taxpayer is liable to pay instalments for the current year in accordance with the following table:

Table 1: Instalments

Table 1: Instalments

Class of taxpayer	Likely tax on reckoning day	Instalment(s) due on:	Instalment amount(s)
Small	less than $8,000	15th day of month 18	100% of likely tax for current year
		15th day of month 21	assessed tax for current year, less previous instalment for current year
Medium	$8,000 to $300,000	1st day of month 12	25% of likely tax for current year
		1st day of month 15	25% of likely tax for current year
		1st day of month 18	25% of likely tax for current year
		1st day of month 21	assessed tax for current year, less previous instalments for current year
Large	more than $300,000	1st day of month 9	25% of likely tax for current year
		1st day of month 12	25% of likely tax for current year
		1st day of month 15	25% of likely tax for current year
		1st day of month 18	assessed tax for current year, less previous instalments for current year

Note:

An instalment taxpayer who fails to pay on time some or all of an instalment is liable to pay the general interest charge on the unpaid amount: see section 221AZMAA .

221AZK(3)   [Definitions]  

For the purposes of Table 1:

(a) a taxpayer is classified as small, medium or large according to the taxpayer's likely tax for the current year, calculated at the end of the reckoning day;

Note:

Sections 221AZKA and 221AZMA can change a taxpayer's classification.

(b) months are reckoned from the start of the current year;

[ For example, if the current year starts on 1 July 1995 then month 12 will be June 1996 and month 15 will be September 1996.]

(c) ``assessed tax'' means the tax payable for the current year, and the amount of interest (if any) payable under section 102AAM for the current year, as shown in the taxpayer's return for the current year.

221AZK(3A)   [Small taxpayers]  

A small taxpayer whose assessed tax for the current year is more than $300,000 must pay an instalment on the first day of month 18 equal to 100% of the assessed tax for the current year.

221AZK(4)   [Calculation]  

Instalments are to be calculated to the nearest dollar.

221AZK(5)   [Treatment as tax]  

Instalments are to be treated as tax for the purposes of sections 206 , 208 , 209 , 214, 254, 255, 258 and 259.