Commonwealth Consolidated Acts

TAXATION ADMINISTRATION ACT 1953 - SECT 8AAZL

  (1)   This Division sets out how the Commissioner must treat the following kinds of amount:

  (a)   a payment the Commissioner receives in respect of a current or anticipated tax debt or tax debts of an entity;

  (b)   a credit (including an excess non - RBA credit) that an entity is entitled to under a taxation law;

  (c)   an RBA surplus of an entity.

  (2)   The Commissioner must treat each such amount using the method set out in section   8AAZLA or 8AAZLB (but not both).

Note:   In either case, section   8AAZLC has some additional rules that apply to RBA surpluses and to certain excess non - RBA credits.

  (3)   However, the Commissioner does not have to treat an amount using either of those methods if doing so would require the Commissioner to apply the amount against a tax debt:

  (a)   that is due but not yet payable; or

  (b)   in respect of which the taxpayer has complied with an arrangement under section   255 - 15 to pay the debt by instalments; or

  (c)   in respect of which the Commissioner has agreed to defer recovery under section   255 - 5.

  (4)   Furthermore, the Commissioner does not have to treat an amount using either of those methods if:

  (a)   doing so would require the Commissioner to apply the amount against a tax debt; and

  (b)   the tax debt is a penalty that is due and payable under section   269 - 20 in Schedule   1 (penalties for directors of non - complying companies).