Taxation Determination

TD 2003/26W

Income tax: Simplified Tax System (STS): for which income year should an STS taxpayer claim an income tax deduction for an amount withheld under the Pay As You Go withholding rules in Division 12 of Schedule 1 to the Taxation Administration Act 1953?

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Notice of Withdrawal

Taxation Determination TD 2003/26 is withdrawn with effect from today.

1. TD 2003/26 explains that an STS taxpayer should claim a deduction for an amount withheld under the Pay As You Go (PAYG) withholding rules in the income year in which that withholding occurs. This is because the amount is 'paid' for the purposes of paragraph 328-105(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) when the STS taxpayer withholds the PAYG amount.

2. TD 2003/26 relates to the STS provisions in former Subdivision 328-G of the ITAA 1997, which were repealed with effect from 21 June 2007.

3. TD 2003/26 has no ongoing relevance and is therefore withdrawn without replacement.

Commissioner of Taxation
7 December 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously released in draft form as TD 2003/D12.

References

ATO references:
NO 1-9N72KXS

Subject References:
deductions and expenses
PAYG withholding
STS accounting methods
STS taxpayers

Legislative References:
ITAA 1997 8-1
ITAA 1997 25-5
ITAA 1997 25-10
ITAA 1997 Div 328
ITAA 1997 328-105(1)(b)
TAA 1953 Sch 1 Div 12
TAA 1953 Sch 1 16-20
TAA 1953 Pt IVAAA

Case References:
AAT Case 5125
(1989) 20 ATR 3592
Case W50 89 ATC 475

Case [2000] AATA 625
(2000) 45 ATR 1019 at 1036
Case 10/2000 2000 ATC 189 at 203
FC of T v. Official Receiver
(1956) 95 CLR 300