Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An employer's notional tax amount for a year of tax (the current year ) as at a particular time (the test time ) is worked out using the table, except as provided in subsections (3), (4) and (5).
Working out an employer's notional tax amount | ||
Item | In this case: | The notional tax amount is: |
1 | No other item applies | the amount of the employer's tax for the most recent year of tax (the base year ) for which the Commissioner has made an assessment before the test time. |
2 | Before the test time, the Commissioner has determined that no tax is payable by the employer for a year of tax, and there is no later year of tax for which the Commissioner has made an assessment of the employer's tax before the test time | nil |
3 | There is no year of tax for which the Commissioner has, before the test time, made an assessment of the employer's tax or determined that no tax is payable by the employer | nil |
4 | The notional tax amount would otherwise be worked out under item 1 and: (a) the rate of tax declared by the Parliament for the current year is different from the rate declared for the base year; and (b) the regulations provide for varying the notional tax amount of employers for the current year | if the test time is before the prescribed day--the notional tax amount worked out under item 1; or if the test time is on and after the prescribed day--that amount as varied in accordance with the regulations. |
Note: The employer's first return for the year of tax is treated as an assessment: see section 72.
(3) The Commissioner may determine that the employer's notional tax amount for the current year is such amount as the Commissioner estimates will be the tax payable by the employer for that year, if the Commissioner has reason to believe that that tax will exceed:
(a) if the notional tax amount would otherwise be worked out under item 1 or 4 of the table in subsection (1)--the amount of the employer's tax for the base year; or
(b) if the notional tax amount would otherwise be worked out under item 2 or 3 of the table in subsection (1)--nil.
(4) Where the Commissioner makes a determination under subsection (3):
(a) the Commissioner shall cause a notice in writing to be served on the employer specifying:
(i) the notional tax amount determined by the Commissioner; and
(ii) the date on which the determination takes effect, being a date not less than 30 days after the date of service of the notice; and
(b) subject to subsection (5), the notional tax amount of the employer in respect of the year of tax is, on and after the date specified in the notice, the amount determined by the Commissioner.
(5) Where, in relation to an instalment of tax in respect of a year of tax, being an instalment that becomes due and payable after the end of a quarter, an employer has estimated pursuant to subsection 112(1) the amount of tax that will be payable in respect of that year of tax and has furnished to the Commissioner a statement in accordance with that subsection, then, on and after the last day of the quarter and until such time as there is a further application of this subsection in relation to a subsequent instalment of tax payable by the employer, the notional tax amount of the employer in respect of the year of tax is, or shall be deemed to have been, as the case requires, an amount equal to the estimated tax.