Chapter 4—Collection and recovery of income tax (and some other taxes)

[The next heading is the heading to Part 4-5.]

Part 4-5—Collection of income tax instalments

Division 750—Guide to Part 4-5

750-1 What this Part is about

Most taxpayers have to pay instalments of income tax before the income tax they actually have to pay can be worked out.

Table of sections

750-5 What instalments of income tax do you have to pay?

750-10 Instalments collected periodically

750-15 Instalments collected in respect of particular transactions

750-20 What happens if your income tax is less than the instalments you have paid? How do you get a refund?

750-5 What instalments of income tax do you have to pay?

(1) There are 2 types of income tax instalments:

(2) Some instalments are directly paid by you. Others are collected indirectly in this way: in certain cases someone who owes you money is required to deduct the instalment from that money, and to remit the instalment to the Commissioner.

750-10 Instalments collected periodically

The Divisions referred to in the table are Divisions of Part VI of the Income Tax Assessment Act 1936.

Item

This type of instalment ...

is paid by this type of taxpayer ...

and is collected in this way ...

See:

1.

Pay-as-you-earn instalments

Individuals who earn salary or wages

Employer deducts instalment from the salary or wages

Division 2

2.

Instalments of income tax

Companies, superannuation funds and approved deposit funds

Direct payment to the Commissioner 1, 2 or 4 times a year

Division 1C

3.

Provisional tax instalments

Individuals and certain trustees

Direct payment to the Commissioner

Division 3

750-15 Instalments collected in respect of particular transactions

Someone who makes a payment to you of the kind referred to in the table is required to deduct an instalment from that money, and to remit the instalment to the Commissioner.

The Divisions referred to in the table are Divisions of Part VI of the Income Tax Assessment Act 1936.

Item

For this type of payment ...

See:

1.

Prescribed payments

Division 3A

2.

Reportable payments

Division 1AA

3.

Income from investments with financial institutions (unless you have quoted your tax file number)

Division 3B

4.

Natural resource payments to non-residents

Division 3B

5.

Withdrawals from Australian Film Industry Trust Accounts

Division 6

750-20 What happens if your income tax is less than the instalments you have paid? How do you get a refund?

For the answers, see the relevant Division referred to in the tables in sections 750-10 and 750-15.

[The next Part is Part 4-10]

 

Income Tax Assessment Act| Apprentice Tax Practitioner Program