INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 4 - Collection of withholding tax  

SECTION 221YSA   CREDITS IN RESPECT OF AMOUNTS ASSESSED UNDER DIVISION 16E OF PART III  

221YSA(1)   [Withholding tax: interest under qualifying security]  

Where:

(a) the amount of any withholding tax that has become payable by a taxpayer on a payment of interest under, or in relation to the transfer of, a qualifying security has been paid;

(b) there is a net Division 16E amount in relation to the taxpayer in relation to:

(i) where the payment of interest is a payment in relation to the transfer of the qualifying security - the security;

(ii) where the payment of interest is such a payment by virtue of the application of section 128AC in relation to an attributable agreement payment within the meaning of that section - the attributable agreement payment; or

(iii) in any other case - the payment of interest; and

(c) the amount of the withholding tax payable on the interest exceeds the amount that would have been payable on the interest if the interest were reduced by the net Division 16E amount,

the taxpayer may apply to the Commissioner for a credit of an amount equal to the excess referred to in paragraph (c).

221YSA(2)   [Application for credit]  

An application under subsection (1) shall:

(a) be in writing; and

(b) set out details of the amounts referred to in paragraphs (1)(a), (b) and (c).

221YSA(3)   [Commissioner's satisfaction as to credit]  

Where, on an application under subsection (1), the Commissioner is satisfied as to the matters referred to in paragraphs (1)(a), (b) and (c), the applicant is entitled to a credit of an amount equal to the excess referred to in paragraph (1)(c).

221YSA(4)   [Net Div 16E amount]  

Subject to subsection (5), for the purposes of this section:

(a) there shall be taken to be a net Division 16E amount in relation to a taxpayer in relation to a qualifying security, an attributable agreement payment or a payment of interest under a qualifying security if the sum of all amounts (if any) included in the assessable income of the taxpayer of any years of income in relation to the security or the payment, as the case may be, under section 159GQ exceeds the sum of all amounts (if any) allowable as deductions from the assessable income of the taxpayer of any years of income in relation to the security or the payment, as the case may be, under those sections; and

(b) the net Division 16E amount is an amount equal to the excess referred to in paragraph (a);

(c) expressions used in this section that are also used in Division 16E of Part III have the same respective meanings as in that Division; and

(d) sections 159GV (other than subsection 159GV(2) ) and 159GZ apply as if references in those sections to ``this Division'' were references to ``section 221YSA''.

221YSA(5)   [``qualifying security'']  

Subsection (4) applies as if paragraph (c) of the definition of ``qualifying security'' in subsection 159GP(1) were omitted.