INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3 - Provisional tax  

Subdivision A - General provisions  

SECTION 221YCA   AMOUNT OF INSTALMENT OF PROVISIONAL TAX  

221YCA(1)   [Amount of instalment payments]  

Subject to this Division, the amount payable by a taxpayer as an instalment of provisional tax for a year of income is:

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

(i) for the first instalment - the relevant percentage of the applicable provisional tax amount;

(ii) for the second instalment - the amount by which the relevant percentage of the applicable provisional tax amount exceeds the amount of the first instalment; or

(iii) for the third instalment - the applicable provisional tax amount, less the sum of the first 2 instalments;

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

(i) for the first instalment - the relevant percentage of the applicable provisional tax amount;

(ii) for the second instalment - the amount by which the relevant percentage of the applicable provisional tax amount exceeds the amount of the first instalment;

(iii) for the third instalment - the amount by which the relevant percentage of the applicable provisional tax amount exceeds the sum of the first 2 instalments; or

(iv) for the fourth instalment - the applicable provisional tax amount, less the sum of the first 3 instalments; or

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

(i) for the first instalment - the relevant percentage of the applicable provisional tax amount; or

(ii) for the second instalment - the applicable provisional tax amount, less the amount of the first instalment.

221YCA(2)   [Adjustment where nil instalment]  

Where:

(a) the amount of an instalment (in this subsection referred to as the ``nil instalment'' ) of provisional tax payable by a taxpayer for a year of income is nil;

(b) the amount of the previous instalment, or the sum of the amounts of the previous instalments, as the case may be, for the year of income exceeds the applicable provisional tax amount ascertained:

(i) where subparagraph (ii) does not apply - as at the instalment notice date in relation to the nil instalment; or

(ii) where the taxpayer has furnished an instalment estimate in relation to the nil instalment:

(A) where subsection 221YDA(4) applies in relation to the instalment estimate - as at the day after the date on which a notice is served on the taxpayer under that subsection; or

(B) in any other case - as at the day after the date of furnishing of the instalment estimate; and

(c) where subparagraph (b)(i) applies - there was a basic provisional tax amount as at the instalment notice date in relation to the nil instalment and the applicable provisional tax amount ascertained as at that instalment notice date was the same as that basic provisional tax amount;

the following provisions apply:

(d) the excess shall be applied in reduction of the previous instalment or, if there are more than one, successively in reduction of the amounts of the previous instalments working from the last to the first;

(e) where an amount of an instalment is reduced and the taxpayer has paid an amount in respect of the instalment, the taxpayer is entitled to a credit equal to the amount overpaid.

221YCA(3)   [Annual adjustment]  

Where:

(a) after the instalment notice date for the final instalment of provisional tax payable by a taxpayer for a year of income, the Commissioner makes an alteration under section 221YG of the amount (in this subsection referred to as the ``lump sum provisional tax amount'' ) that would, but for subsection 221YBA(5) , be the provisional tax payable by the taxpayer for the year of income; and

(b) either of the following subparagraphs applies:

(i) the sum of the instalments of provisional tax for the year of income exceeds the lump sum provisional tax amount as altered by the Commissioner;

(ii) the lump sum provisional tax amount as altered by the Commissioner exceeds the sum of the instalments of provisional tax for the year of income;

the following provisions apply:

(c) where subparagraph (b)(i) applies:

(i) the excess shall be applied successively in reduction of the amounts of the instalments, working from the last to the first; and

(ii) where an amount of an instalment is reduced and the taxpayer has paid an amount in respect of the instalment, the taxpayer is entitled to a credit equal to the amount overpaid;

(d) where subparagraph (b)(ii) applies:

(i) the amount of the final instalment shall be increased by the excess; and

(ii) the additional amount is due and payable on the date specified for the purpose in the notice by the Commissioner under section 221YG , being a date not earlier than 30 days after the date of service of that notice.

221YCA(4)   [Annual adjustment re instalment estimate]  

Where:

(a) after the instalment notice date for the final instalment of provisional tax payable by a taxpayer for a year of income, the Commissioner causes to be served a notice under subsection 221YDA(4) in respect of the application of that subsection in relation to an instalment estimate furnished by the taxpayer in respect of a previous instalment of provisional tax for the year of income; and

(b) the amount that would have been the amount of the final instalment if the notice had been served on the day before the instalment notice date in relation to the final instalment exceeds the amount of the final instalment;

the following provisions have effect:

(c) the amount of the final instalment shall be increased by the excess;

(d) the additional amount shall be specified in the notice;

(e) the additional amount is due and payable on the date specified in the notice, for the purposes of subsection 221YDA(6A) , as the date on which the increase in the previous instalment became due and payable.