INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3 - Provisional tax  

Subdivision A - General provisions  

SECTION 221YA   INTERPRETATION  

221YA(1)   [Definitions]  

In this Division:

"applicable provisional tax amount"
, in relation to an instalment of provisional tax for a year of income, means:

(a) if the instalment is the final instalment for the year of income:

(i) if there is a varied provisional tax amount in relation to the year of income as at the instalment notice date - that varied provisional tax amount; or

(ii) in any other case - the basic provisional tax amount in relation to the year of income as at the instalment notice date; or

(b) in any other case:

(i) if there is a varied provisional tax amount in relation to the year of income as at the instalment notice date - that varied provisional tax amount;

(ii) if subparagraph (i) does not apply but there is a basic provisional tax amount in relation to the year of income as at the instalment notice date - that basic provisional tax amount or the previous year's provisional tax amount as at the instalment notice date, whichever is the less; or

(iii) in any other case - the previous year's provisional tax amount as at the instalment notice date;

"basic provisional tax amount"
, as at a particular date (in this definition referred to as the ``reckoning date'') in relation to a year of income, means the amount ascertained under section 221YC (as affected by any reduction under section 221YDC or any alteration under section 221YG ) as:

(a) the provisional tax payable by the taxpayer in respect of the income of the year of income; or

(b) the amount that would, but for subsection 221YBA(5) , be the provisional tax payable by the taxpayer in respect of the income of the year of income,

and notified by the Commissioner to the taxpayer:

(c) in a notice of assessment; or

(d) in a notice under paragraph 221YD(1)(b) or (1A)(b) or subsection 221YG(1) ;

where the date specified in the notice as the date of issue of the notice is not later than the reckoning date;

"estimated PAYE deductions"
, in relation to a year of income, means the amount of the estimated deductions made from the taxpayer's salary or wages during the year of income in accordance with sections 221C and 221D , as shown in the statement furnished to the Commissioner under section 221YDA ;

"estimated taxable income"
, in relation to a year of income, means the amount of the estimated taxable income of the taxpayer for that year of income as shown in a statement furnished to the Commissioner under section 221YDA ;

"final instalment"
means:

(a) where paragraph 221YBA(3)(a) applies - the third instalment;

(b) where paragraph 221YBA(3)(b) applies - the fourth instalment; or

(c) where paragraph 221YBA(3)(c) applies - the second instalment;

"first non-159J(1C) year of income"
means the first year of income in respect of which the amount that is taken by section 159HA to replace the amount of $1,000 in relation to dependants included in class 1 in the table in subsection 159J(2) exceeds $1,452;

Note:

This definition is called the ``first non-159J(1C) year of income'' because, if it applies in relation to a year of income, subsection 159J(1C) will not apply to any taxpayer for that year of income.

GIC period
, in relation to an instalment of provisional tax for a year of income (the current instalment ), means:

(a) if the current instalment is not the last instalment of provisional tax for the year of income - the period starting at the beginning of the due date for payment of the current instalment and finishing at the end of the due date for payment of the next instalment of provisional tax for the year of income; or

(b) if the current instalment is the last instalment of provisional tax for the year of income - the period starting at the beginning of the due date for payment of the current instalment and finishing at the end of the due date for payment of the tax payable in respect of the taxable income of the year of income.

"instalment estimate"
means a statement under subsection 221YDA(1) in relation to an instalment notice;

"instalment notice"
means a notice served under subsection 221YDAA(1) ;

"instalment notice date"
, in relation to an instalment of provisional tax, means the date specified in the instalment notice as the date of issue of the notice;

"instalment of provisional tax"
means an instalment of provisional tax payable in accordance with section 221YBA ;

"penalty period"

"prescribed payment"
means a prescribed payment as defined in section 221YHA ;

"previous year's provisional tax amount"
, as at a particular date in relation to a year of income, means:

(a) if there is a varied provisional tax amount in relation to the next preceding year of income as at that date - that varied provisional tax amount; or

(b) if paragraph (a) does not apply - the basic provisional tax amount in relation to the next preceding year of income as at that date;

"provisional income"
, in relation to a year of income means:

(a) an amount equal to the taxable income of the taxpayer for the year next preceding that year of income; or

(b) where the taxpayer commenced, during the year next preceding that year of income, to derive income from any source - such amount as the Commissioner estimates would have been the taxable income for that preceding year if the taxpayer had commenced, at the beginning of that preceding year, to derive income from that source;

"provisional tax"
means any amount payable as provisional tax, or as provisional tax and contribution, in accordance with Division 3 of Part VI of the Income Tax Assessment Act 1936-1944 , or of that Act as amended at any time;

provisional tax uplift factor
has the meaning given by section 221YAAA .

"provisional tax uplift multiplier"
, in relation to a year of income, means the amount calculated using the formula:

1   +   Uplift factor

where

`` Uplift factor '' means the provisional tax uplift factor for the year of income (expressed as a decimal fraction);

"relevant percentage"
, in relation to an instalment of provisional tax, means:

(a) where paragraph 221YBA(3)(a) applies:

(i) for the first instalment - 50%;

(ii) for the second instalment - 75%; or

(iii) for the third instalment - 100%;

(b) where paragraph 221YBA(3)(b) applies:

(i) for the first instalment - 25%;

(ii) for the second instalment - 50%;

(iii) for the third instalment - 75%; or

(iv) for the fourth instalment - 100%; or

(c) where paragraph 221YBA(3)(c) applies:

(i) for the first instalment - 50%; or

(ii) for the second instalment - 100%;

"reportable payment"
has the same meaning as in Division 1AA ;

"salary or wages"
means salary or wages as defined in section 221A ;

"section 221YAB taxpayer"
, in relation to a year of income, means a taxpayer to whom section 221YAB applies in relation to the year of income;

"State income tax law"

"uplifted provisional tax amount"
has the meaning given by section 221YCAA ;

"varied provisional tax amount"
, as at a particular date in relation to a year of income, means the amount determined (or last determined, as the case requires) before that date, in accordance with section 221YDA (as affected by any reduction under section 221YDC or any alteration under section 221YG ), as:

(a) the provisional tax payable by the taxpayer in respect of the income of the year of income; or

(b) the amount that would, but for subsection 221YBA(5) , be the provisional tax payable by the taxpayer in respect of the income of the year of income;

221YA(1A)   [``income tax'' or ``tax'']  

In this Division, other than subsection 221YBA(6) , subsections 221YCA(2) and (3) and sections 221YE and 221YG , ``income tax'' or ``tax'' does not include further tax assessed in accordance with section 94 .

221YA(1B)   [Disregard net capital gain]  

For the purposes of this Division, disregard a taxpayer's net capital gain for a year in working out the taxpayer's taxable income for that year.

221YA(1C)   [Investment-related lottery winnings]  

If an amount is included in a taxpayer's assessable income for a year of income under section 26AJ , then, for the purposes of this Division, the taxpayer's taxable income for the year of income is taken to be the amount that would have been that taxable income if that amount had not been so included.

221YA(2)   [Provisional tax and additional tax]  

In sections 206 , 208 , 209 , 214 , 254 , 255 , 258 and 259 , but not in any other section of this Act, ``income tax'' or ``tax'' includes provisional tax and additional tax under section 221YDB .

221YA(2A)   [Instalments of provisional tax]  

Unless the contrary intention appears, references in this Act (other than this Division) and in any other law of the Commonwealth to provisional tax include references to instalments of provisional tax.

221YA(2B)   [Reference re nil instalment of tax]  

Where an instalment notice is served (not including an instalment notice that is deemed by subsection 221YDAA(7) to have been served) in respect of a nil instalment of provisional tax, a reference in this Division to the date on which the instalment is due and payable is a reference to the date specified as such in the instalment notice.

221YA(3)   [Ascertainment not assessment]  

The ascertainment of the amount of any provisional tax shall not be deemed to be an assessment within the meaning of any of the provisions of this Act.

221YA(4)   [Calculation to nearest dollar]  

All amounts of provisional tax shall be calculated to the nearest dollar.

221YA(4A)   [``provisional tax'' includes instalment]  

In subsections (2), (3) and (4), ``provisional tax'' includes an instalment of provisional tax.

221YA(5)   [Calculation of provisional income]  

For the purposes of the application of the definition of ``provisional income'' in subsection (1) in relation to a taxpayer in relation to a year of income:

(a) where the taxable income of the taxpayer of the next preceding year of income was, by virtue of the application of any of the provisions of Division 16C of Part III or the provisions of Schedule 2G , greater or less than it would have been but for the application of that Division or Schedule; or

(b) where a deduction has been allowed or is allowable, or deductions have been allowed or are allowable, to a taxpayer under section 77F , 124ZAF or 124ZAFA in his assessment in respect of income of the next preceding year of income,

the taxable income of the taxpayer of that next preceding year of income shall be deemed to be:

(c) where paragraph (a) applies, but paragraph (b) does not apply, to the taxpayer - the amount that would have been that taxable income but for the application of Division 16C of Part III or Schedule 2G ;

(d) where paragraph (b) applies, but paragraph (a) does not apply, to the taxpayer - the amount that, but for this subsection, would have been that taxable income, increased by the aggregate of the deductions allowed or allowable to the taxpayer under sections 77F , 124ZAF and 124ZAFA in his assessment in respect of income of the next preceding year of income; and

(e) where paragraphs (a) and (b) apply to the taxpayer - the amount that would have been that taxable income but for the application of Division 16C of Part III or the application of Schedule 2G and but for this subsection increased by the aggregate of the deductions allowed or allowable to the taxpayer under sections 77F , 124ZAF and 124ZAFA in his assessment in respect of income of the next preceding year of income.

221YA(5A)    

221YA(6)