INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3B - Collection of tax in respect of certain payments  

Subdivision A - Interpretation  

SECTION 221YHZA   INTERPRETATION  

221YHZA(1)   [Definitions]  

In this Division:

"eligible deferred interest investment"
means a qualifying security (within the meaning of Division 16E of Part III ), being:

(a) a Part VA investment of a kind mentioned in item 1 or 2 in the table in subsection 202D(1) ; or

(b) a non-transferable Part VA investment of a kind mentioned in item 3 in the table in subsection 202D(1) ;

"government body"
means the Commonwealth, a State, a Territory or an authority of the Commonwealth or a State or Territory;

"investment body"
means an investment body as defined in section 202D ;

"investor"
means an investor as defined in section 202D ;

"natural resource payment"
means a payment that is calculated, in whole or in part, by reference to the value or quantity of natural resources produced, recovered or produced and recovered, in Australia after 7 April 1986, but does not include a payment of, or by way of, royalty;

"Part VA investment"
means an investment of a kind mentioned in section 202D ;

"royalty payment"

"share investment"
means a Part VA investment of a kind mentioned in item 6 in the table in subsection 202D(1) ;

"term"
, in relation to an eligible deferred interest investment, has the same meaning as in Division 16E of Part III ;

"unattributed income"
:

(a) in relation to a non-transferable Part VA investment, means income in respect of the investment that becomes payable to the investor at a time when the investor's tax file number is not taken, for the purposes of Part VA , to have been quoted in connection with the investment, other than such income that becomes payable at a time when:

(i) a provision of Division 5 of Part VA that previously applied to the investor has ceased to apply; and

(ii) the investment body concerned has not been informed of anything that would result in the provision ceasing to apply; or

(b) in relation to a transferable Part VA investment, means income payable in respect of that investment to an investor who, at the books closing time applicable to the income, is not or was not taken, for the purposes of Part VA, to have quoted the investor's tax file number in connection with the investment, other than such income that becomes payable at a time when:

(i) a provision of Division 5 of Part VA that previously applied to the investor has ceased to apply; and

(ii) the investment body concerned has not been informed of anything that would result in the provision ceasing to apply.

221YHZA(2)   [Money reinvested, accumulated, capitalised or otherwise dealt with]  

For the purposes of this Division, where money, or income in a form other than money, is not actually paid to a person but is reinvested, accumulated, capitalised or otherwise dealt with on behalf of the person, or as the person directs, the money or income shall be taken to be paid to the person when it is so reinvested, accumulated, capitalised or otherwise dealt with.

221YHZA(2A)   [Share in investment income]  

For the purposes of this Division, where a person becomes presently entitled, as an investor in relation to an investment of the kind mentioned in item 5 in the table in subsection 202D(1) , to a share of income in respect of the investment, that share of the income shall be taken to be paid to the person as income in respect of the investment when the person becomes so entitled.

221YHZA(2B)   [Income under eligible deferred interest investment]  

If, apart from this subsection, an investment body is liable to pay an amount of income to an investor under an eligible deferred interest investment, this Subdivision and Subdivision B only apply to so much of that payment as is covered by either of the following paragraphs:

(a) so much of a payment as consists of a periodic interest payment (within the meaning of Division 16E of Part III );

(b) so much of a payment that became payable at the end of the term of the investment as does not exceed:

(i) the amount that, under section 159GQ , would have been included in the investor's assessable income for the year of income in which the end of the term occurred;

if:

(ii) any adoption of an accounting period in lieu of a year of income were ignored for the purposes of this paragraph and the application of Division 16E of Part III in relation to this paragraph.

221YHZA(3)   [Non-resident partnership]  

For the purposes of this Division, where one or more of the partners in a partnership is a non-resident, the partnership shall be deemed to be a non-resident.

221YHZA(4)   [Person deemed to be investment body]  

For the purposes of this Division (other than subparagraphs (a)(ii) and (b)(ii) of the definition of ``unattributed income'' in subsection (1)), if the investment body in relation to an investment of the kind mentioned in item 5 or item 7 in the table in subsection 202D(1) is not liable to pay income in respect of the investment, any other person who is liable to pay it is taken to be the investment body.

221YHZA(5)   [Books closing time]  

For the purposes of this Division, if income in relation to a Part VA investment becomes payable to a person because the person was registered with the investment body as the investor as at a particular time, that time is the books closing time in relation to the income.