INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
Part 2-42 inserted by No 86 of 2000.
Div 86 inserted by No 86 of 2000.
(a) before the end of 14 July in a particular income year, you receive, as salary or wages, *personal services income of yours from the *personal services entity; and
(b) failure to make the payment before the end of 14 July would have resulted in an amount of income being included in your assessable income under section 86-15 for the preceding income year;
you are taken to have received the payment on 30 June of that preceding income year.
Continuing example 2 in section 86-20: Assume that NewIT is a small withholder for PAYG withholding purposes, and its PAYG payment period covering April 2001 to June 2001 is the quarter ending on 30 June 2001. NewIT's income for that period (after taking into account any reductions under sections 86-20 and 86-25) includes $20,000 that is Ron's personal services income, and NewIT pays this to Ron on 12 July 2001.
The $20,000 that Ron receives is assessable income for the income year ended on 30 June 2001.
However, this section does not affect the time at which the *personal services entity is treated as having paid the salary or wages.
Therefore neither the timing of the entity's deduction for the payment, nor the timing of the obligation to withhold amounts under section 12-35 in Schedule 1 to the Taxation Administration Act 1953, is affected.
However, these payments are treated as relating to the preceding income year for the purposes of the rules relating to payment summaries, PAYG credits and PAYG withholding non-compliance tax (see Subdivisions 16-C, 18-A and 18-D in Schedule 1 to the Taxation Administration Act 1953).
S 86-40(2) amended by No 99 of 2012, s 3 and Sch 1 item 10, by substituting ", PAYG credits and PAYG withholding non-compliance tax (see Subdivisions 16-C, 18-A and 18-D" for "and PAYG credits (see Subdivisions 16-C and 18-A" in note 2, applicable to an individual in relation to amounts withheld by a company, if: (a) the amounts are withheld during an income year of the individual starting on or after 1 July 2011; and (b) the company is required to pay the amounts withheld to the Commissioner on or after 30 June 2012.
S 86-40 inserted by No 86 of 2000.