Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1987No. 61, 1987 - SECT 18

18. After section 221YC of the Principal Act the following section is
inserted: Amount of instalment of provisional tax

"221YCA. (1) Subject to this Division, the amount payable by a taxpayer as an
instalment of provisional tax for a year of income is -

   (a)  where paragraph 221YBA (3) (a) applies -

        (i)    for the first instalment - the relevant percentage of the
               applicable provisional tax amount;

        (ii)   for the second instalment - the amount by which the relevant
               percentage of the applicable provisional tax amount exceeds the
               amount of the first instalment; or

        (iii)  for the third instalment - the applicable provisional tax
               amount, less the sum of the first 2 instalments;

   (b)  where paragraph 221YBA (3) (b) applies -

        (i)    for the first instalment - the relevant percentage of the
               applicable provisional tax amount;

        (ii)   for the second instalment - the amount by which the relevant
               percentage of the applicable provisional tax amount exceeds the
               amount of the first instalment;

        (iii)  for the third instalment - the amount by which the relevant
               percentage of the applicable provisional tax amount exceeds the
               sum of the first 2 instalments; or

        (iv)   for the fourth instalment - the applicable provisional tax
               amount, less the sum of the first 3 instalments; or

   (c)  where paragraph 221YBA (3) (c) applies -

        (i)    for the first instalment - the relevant percentage of the
               applicable provisional tax amount; or

        (ii)   for the second instalment - the applicable provisional tax
               amount, less the amount of the first instalment.

"(2) Where -

   (a)  the amount of an instalment (in this sub-section referred to as the
        'nil instalment') of provisional tax payable by a taxpayer for a year
        of income is nil;

   (b)  the amount of the previous instalment, or the sum of the amounts of
        the previous instalments, as the case may be, for the year of income
        exceeds the applicable provisional tax amount ascertained -

        (i)    where sub-paragraph (ii) does not apply - as at the instalment
               notice date in relation to the nil instalment; or

        (ii)   where the taxpayer has furnished an instalment estimate in
               relation to the nil instalment -

                (A)  where sub-section 221YDA (4) applies in relation to the
                     instalment estimate - as at the day after the date on
                     which a notice is served on the taxpayer under that
                     sub-section; or

                (B)  in any other case - as at the day after the date of
                     furnishing of the instalment estimate; and

   (c)  where sub-paragraph (b) (i) applies - there was a basic provisional
        tax amount as at the instalment notice date in relation to the nil
        instalment and the applicable provisional tax amount ascertained as at
        that instalment notice date was the same as that basic provisional tax
        amount, the following provisions apply:

   (d)  the excess shall be applied in reduction of the previous instalment
        or, if there are more than one, successively in reduction of the
        amounts of the previous instalments working from the last to the
        first;

   (e)  where an amount of an instalment is reduced and the taxpayer has paid
        an amount in respect of the instalment, the Commissioner shall -

        (i)    credit any amount overpaid successively to -

                (A)  the payment of any instalment of provisional tax payable
                     by the taxpayer for the year of income; and

                (B)  the payment of any income tax payable by the taxpayer in
                     respect of the income of any year of income; and

        (ii)   refund to the taxpayer any part of the amount overpaid that is
               not so credited.

"(3) Where -

   (a)  after the instalment notice date for the final instalment of
        provisional tax payable by a taxpayer for a year of income, the
        Commissioner makes an alteration under section 221YG of the amount (in
        this sub-section referred to as the 'lump sum provisional tax amount')
        that would, but for sub-section 221YBA (5), be the provisional tax
        payable by the taxpayer for the year of income; and

   (b)  either of the following sub-paragraphs applies:

        (i)    the sum of the instalments of provisional tax for the year of
               income exceeds the lump sum provisional tax amount as altered
               by the Commissioner;

        (ii)   the lump sum provisional tax amount as altered by the
               Commissioner exceeds the sum of the instalments of provisional
               tax for the year of income, the following provisions apply:

   (c)  where sub-paragraph (b) (i) applies -

        (i)    the excess shall be applied successively in reduction of the
               amounts of the instalments, working from the last to the first;
               and

        (ii)   where an amount of an instalment is reduced and the taxpayer
               has paid an amount in respect of the instalment, the
               Commissioner shall -

                (A)  credit any amount overpaid successively to the payment of
                     any instalment of provisional tax payable by the taxpayer
                     for the year of income and the payment of any income tax
                     payable by the taxpayer in respect of the income of any
                     year of income; and

                (B)  refund to the taxpayer any part of the amount overpaid
                     that is not so credited;

   (d)  where sub-paragraph (b) (ii) applies -

        (i)    the amount of the final instalment shall be increased by the
               excess; and

        (ii)   the additional amount is due and payable on the date specified
               for the purpose in the notice by the Commissioner under section
               221YG, being a date not earlier than 30 days after the date of
               service of that notice.

"(4) Where -

   (a)  after the instalment notice date for the final instalment of
        provisional tax payable by a taxpayer for a year of income, the
        Commissioner causes to be served a notice under sub-section 221YDA (4)
        in respect of the application of that sub-section in relation to an
        instalment estimate furnished by the taxpayer in respect of a previous
        instalment of provisional tax for the year of income; and

   (b)  the amount that would have been the amount of the final instalment if
        the notice had been served on the day before the instalment notice
        date in relation to the final instalment exceeds the amount of the
        final instalment, the following provisions have effect:

   (c)  the amount of the final instalment shall be increased by the excess;

   (d)  the additional amount shall be specified in the notice;

   (e)  the additional amount is due and payable on the date specified in the
        notice, for the purposes of sub-section 221YDA (6A), as the date on
        which the increase in the previous instalment became due and
        payable.".