Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 775.110

Constructive receipts and payments

                   For the purposes of this Subdivision, if an entity (the payer ) did not actually pay an amount to another entity (the recipient ), but the amount was applied or dealt with in any way on the recipient's behalf or as the recipient directs (including by discharging all or a part of an obligation owed by the recipient), then:

                     (a)  the payer is taken to have paid the amount as soon as it is applied or dealt with; and

                     (b)  the recipient is taken to have received the amount as soon as it is applied or dealt with.

Note:          The set-off of an obligation to pay an amount against a right to receive an amount is an example of how this section would operate.



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