Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1987No. 61, 1987 - SECT 21

21. Section 221YDA of the Principal Act is amended -
(a) by omitting from the beginning of sub-section (1) to "make an estimate of
-" and substituting the following:

"(1) A taxpayer who receives -

   (a)  a notice of assessment on which is notified the amount of provisional
        tax payable in respect of the income of a year of income (including an
        accounting period adopted by the taxpayer under this Act); or

   (b)  an instalment notice in respect of an instalment of provisional tax
        for a year of income (including an accounting period adopted by the
        taxpayer under this Act), may, not later than -

   (ba) where paragraph (a) applies -

        (i)    the due date for payment of the tax notified by the notice
               referred to in that paragraph; or

        (ii)   31 March in the year of income or, in the case of an accounting
               period, the last day of the ninth month of that accounting
               period, whichever is the later; or

   (bb) where paragraph (b) applies - the due date for payment of the
        instalment notified by the instalment notice, or within such further
        time as the Commissioner may allow, make an estimate of - ";

   (b)  by inserting after sub-section (1) the following sub-section:

"(1AAA) Where -

   (a)  a taxpayer furnishes an instalment estimate (in this subsection
        referred to as the 'first instalment estimate') in relation to the
        first instalment of provisional tax for a year of income;

   (b)  the varied provisional tax amount determined in relation to the first
        instalment estimate, as at the instalment notice date in relation to
        the second instalment, is greater than nil; and

   (c)  the amount calculated under sub-section (2) in relation to the first
        instalment estimate as the amount that would, but for sub-section
        221YBA (5), be the provisional tax payable by the taxpayer in respect
        of the income of the year of income is not the same as the amount that
        would have been calculated under that sub-section in relation to the
        first instalment estimate if the calculation had been made on the
        instalment notice date in relation to the second instalment, for the
        purposes of the application of this Division in relation to the second
        instalment and any subsequent instalment for the year of income, the
        first instalment estimate shall be taken not to have been furnished.";

   (c)  by inserting after sub-section (2) the following sub-sections:

"(2AA) Where -

   (a)  a taxpayer furnishes an instalment estimate in relation to an
        instalment of provisional tax for a year of income; and

   (b)  the taxpayer furnishes an instalment estimate in relation to a
        subsequent instalment of provisional tax for the year of income,
        sub-section (2) applies in relation to the instalment estimate
        referred to in paragraph (b) -

   (c)  with effect from the date of furnishing of the instalment estimate
        referred to in paragraph (b); and

   (d)  notwithstanding the application of that sub-section in relation to the
        instalment estimate referred to in paragraph (a).

"(2AB) Where a taxpayer furnishes an instalment estimate in relation to an
instalment of provisional tax, the amount payable by the taxpayer as that
instalment is the amount that would have been payable if the applicable
provisional tax amount had been ascertained -

   (a)  where sub-section (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, instead of as at the instalment notice date.

"(2AC) For the purposes of sections 207 and 221YDB, where, under sub-section
(1) of this section, the Commissioner has allowed a further time for the
furnishing by a taxpayer of an instalment estimate under that sub-section in
respect of an instalment, that instalment shall be deemed to have become due
and payable by the taxpayer on the date specified in paragraph (1) (bb).";

   (d)  by omitting from sub-section (2A) "specified in paragraph (1) (a) or
        on the date specified in paragraph (1) (b), whichever is the later"
        and substituting "applicable under paragraph (1) (ba)";

   (e)  by inserting after sub-section (3) the following sub-section:

"(3A) Where an instalment of provisional tax is payable by a taxpayer in
accordance with sub-section (2AB), that instalment is, notwithstanding section
221YD, due and payable on the date that is the date not later than which the
taxpayer was permitted to furnish the statement under sub-section (1) in
relation to that instalment.";

   (f)  by inserting after sub-section (4) the following sub-section:

"(4A) Where sub-section (4) applies in relation to an instalment estimate
furnished by a taxpayer in respect of an instalment of provisional tax, the
notice served on the taxpayer under that subsection shall specify the amount
that, by virtue of sub-section (2AB), is the amount payable by the taxpayer as
that instalment.";

   (g)  by inserting after sub-section (6) the following sub-section:

"(6A) Where sub-section (4) applies in relation to an instalment estimate
furnished by a taxpayer in respect of an instalment of provisional tax, the
notice served on the taxpayer under that subsection shall state the amount of
any increase in that instalment that becomes payable by reason of the
operation of that sub-section and shall specify a date as the due date for the
payment of that increase, being a date not less than 14 days after the date of
service of the notice, and the amount of the increase so stated is,
notwithstanding sub-section (3A), due and payable on that date."; and

   (h)  by adding at the end the following sub-section:

"(8) A reference in this section (other than paragraph (1) (a) or sub-section
(2A), (3) or (6)) to the amount of provisional tax payable by a taxpayer
includes a reference to the amount that, but for sub-section 221YBA (5), would
be the provisional tax payable by the taxpayer.".