INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 4 - Collection of withholding tax  

SECTION 221YP   DIVIDENDS ETC. NOT IN MONEY NOT TO BE PAID UNTIL PAYMENT MADE TO COMMISSIONER ON ACCOUNT OF TAX  

221YP(1)   [Duty of company]  

Where:

(a) a dividend is to be paid by a company to a person; and

(b) the company would, but for subsection 221YL(4) , be required to make a deduction under section 221YL from the dividend,

the company shall not pay, credit or distribute the dividend to any person before 1 July 2000 unless an amount equal to the amount that, but for that subsection, would have been required to be deducted has been paid to the Commissioner in respect of the dividend.

221YP(2)   [Commonwealth, State or resident payee]  

Where:

(a) a dividend is paid to the Commonwealth, a State, an authority of the Commonwealth or a State or a person in Australia (in this section referred to as ``the payee'' ); and

(b) the payee would, but for subsection 221YL(4) , be required to make a deduction under section 221YL from the dividend or a part of the dividend,

the payee shall not pay, credit or distribute the dividend, or the part of the dividend, to any person before 1 July 2000 unless an amount equal to the amount that, but for that subsection, would have been required to be deducted has been paid to the Commissioner in respect of the dividend.

221YP(3)   [Request to inform company]  

A person who has paid an amount to the Commissioner in respect of a dividend for the purposes of this section may, in writing, request the Commissioner to inform the company by which the dividend is to be paid, or any person to whom the dividend has been paid, that that amount has been so paid in respect of that dividend, and, upon receipt of such a request, the Commissioner shall, in writing, inform that other person accordingly.

221YP(3A)   [Deductions re interest]  

Where:

(a) interest to which section 128AA , 128AC or 128AD applies is to be paid by a person; and

(b) the person would, but for subsection 221YL(4) , be required to make a deduction under section 221YL from the interest,

the person shall not pay or credit the interest to any person before 1 July 2000 unless an amount equal to the amount that, but for that subsection, would have been required to be deducted has been paid to the Commissioner in respect of the interest.

221YP(4)   [Non-compliance]  

A person, other than the Commonwealth, a State or an authority of the Commonwealth or of a State, who refuses or fails to comply with a provision of this section is guilty of an offence punishable on conviction by a fine not exceeding $1,000.