INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

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

Subdivision C - Collection of TFN withholding tax payable on the non-quotation of tax file numbers in respect of eligible deferred interest investments  

SECTION 221YHZV   INVESTMENT BODY MAY RECOVER TFN WITHHOLDING TAX FROM INVESTOR  

221YHZV(1)   [Liability of investor]  

If an investment body pays TFN withholding tax, whether or not on behalf of the investor:

(a) the investor in relation to the eligible deferred interest investment is liable to pay to the investment body an amount equal to that TFN withholding tax; and

(b) the investment body may recover that amount from the investor as a debt due to the investment body.

221YHZV(2)   [Amount may be deducted from investment balance]  

If:

(a) an investor is liable to pay an amount (in this section called the ``TFN withholding tax amount'' ) under subsection (1) in respect of an eligible deferred interest investment; and

(b) there is an amount (in this section called the ``investment balance'' ) accruing to, or standing to the credit of, the investor, in relation to the eligible deferred interest investment, whether or not the investment balance is due;

the investment body may:

(c) reduce the investment balance by an amount equal to the TFN withholding tax amount; or

(d) deduct or set-off an amount equal to the TFN withholding tax amount from the investment balance.

221YHZV(3)   [Arrangement to recover amount payable]  

This section does not prevent an investment body from entering into an agreement or arrangement with an investor under which the investment body is entitled to recover from the investor amounts payable under subsection (1).