Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 110

110. (1) Subject to this section, the notional tax amount of an employer in
respect of a standard year of tax is-

   (a)  in the case of the year of tax commencing on 1 April 1987-the amount
        ascertained by multiplying by 1.42 the tax that was assessed
        in respect of the employer in respect of the immediately preceding
        year of tax; and

   (b)  in the case of a subsequent year of tax-the amount of the tax that was
        assessed in respect of the employer in respect of the immediately
        preceding year of tax.

(2) Subject to the following provisions of this section, where-

   (a)  the rate of tax declared by the Parliament for a standard year of tax
        is different from the rate declared for the immediately preceding
        year of tax; and

   (b)  provision is made by the regulations for varying the notional tax
        amount of employers in respect of the year of tax, then, on and after
        such date as is prescribed, the notional tax amount of the employer
        in respect of that year of tax is the amount ascertained in accordance
        with sub-section (1) as varied in accordance with the provision so
        made by the regulations.

(3) Where the Commissioner has reason to believe that the tax assessed in
respect of an employer in respect of the year of tax will be greater than the
tax (if any) that was assessed in respect of the immediately preceding year of
tax, the Commissioner may determine that the notional tax amount of the
employer in respect of the year of tax is such amount as the Commissioner
estimates will be the tax payable by the employer in respect of the year of
tax.

(4) Where the Commissioner makes a determination under sub-section (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 sub-section (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 standard year
of tax, being an instalment that becomes due and payable on the twenty-eighth
day after the end of a quarter, an employer has estimated pursuant to
sub-section 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 sub-section, then, on and after the last day of the quarter and
until such time as there is a further application of this sub-section 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.