Taxation Determination TD 93/50







[Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.] | 1. Yes. Where an amount withheld from payments for work and services under Subdivision 12 B of Schedule 1 to the Taxation Administration Act 1953 (TAA) exceeds the tax liability assessed for the year of income, subsection 18-15(1) of Schedule 1 to the TAA requires the excess amounts withheld to be credited against any other tax payable by the employee. | 2. Subsection 9(4) of the Taxation (Interest on Overpayments and Early Payments) Act 1983 (TIOEPA) operates so that when amounts withheld by an employer (and which have been remitted to the Commissioner) are credited against the tax liability of an employee, the employee is deemed to have paid the tax to the extent of the amount so credited. The provision operates generally where an amount paid by one person has been applied against the tax liability of another person. | 3. The crediting or absorption of the amounts withheld against tax outstanding is 'an amount of relevant tax ... paid by a person' for the purposes of subsection 9(1) of the TIOEPA. The employee is deemed to have paid that amount on the day on which the amount is applied against the employee's tax liability, usually the date of the relevant assessment. | Example: A taxpayer lodges an objection against his/her 2000/01 tax assessment of $1,000. The assessment is not paid. On 31 July 2002, the taxpayer's 2001/02 assessment issues with excess amounts withheld of $400 over the tax assessed for the year. The excess amounts withheld are applied against the tax outstanding. The taxpayer's objection to the 2000/01 assessment is allowed and the $400 previously withheld in respect of the 2001/02 assessment is then refunded. The taxpayer is deemed to have paid $400 to the Commissioner on 31 July 2002 towards the outstanding 2000/01 tax for the purposes of calculating interest on overpayments. | Commissioner of Taxation 25/3/93 | Previously issued as Draft TD 93/D11


Related rulings: TD 92/150 IT 2069 IT 2295 IT 2381
Legislative references: TIOEP Act 1983 9(1) TIOEP Act 1983 9(4) TAA 1953 Sch 1 Subdiv 12-B TAA 1953 Sch 1 18-15(1)
Subject references: interest on overpayments overpaid tax tax refunds taxation objections and appeals