Section OB 69 — Income Tax Act 2007: Further income tax paid satisfying liability for income tax

OB 69 Further income tax paid satisfying liability for income tax Election (1) An ICA company that pays further income tax may choose to treat the payment as satisfying a liability of the company to pay income tax or provisional tax. ICA company status (2) The liability for income tax or provisional tax referred to in subsection (1) must be for an income year corresponding to a tax year in which the company is an ICA company. Alternative for consolidated imputation group (3) A company that is part of a consolidated imputation group may choose that the payment under subsection (1) satisfies a group liability for income tax or provisional tax that arises at or after the time of payment. When treated as paid (4) The liability for income tax or provisional tax is treated as paid on the day on which the further income tax is paid. Australian ICA company (5) An Australian ICA company may choose to convert a payment of further income tax into a tax loss of an amount calculated under subsection (7). Subsection (6) overrides this subsection. Requirement (6) The election under subsection (5) may be made only if no possibility exists that the further income tax can be credited against a future income tax liability of the company. Tax loss (7) For the purposes of subsection (5), the amount of the tax loss for the payment of further income tax is calculated using the formula— further income tax paid tax rate. Definition of items in formula (8) In the formula,— (a) further income tax paid is the amount of further income tax paid that is not credited against an income tax liability: (b) tax rate is the basic rate of income tax set out in schedule 1 , part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) at the time the further income tax is paid. Benefit of the loss (9) For the purposes of subsection (5), the company may choose that the tax loss is attributed to itself or to another company that is part of the same wholly-owned group of companies. When loss is attributed (10) The tax loss referred to in subsection (5) is a loss for the income year corresponding to the tax year in which the company paid the further income tax. Defined in this Act: amount , Australian ICA company , basic rate , consolidated imputation group , further income tax , ICA company , income tax , income tax liability , income year , pay , provisional tax , tax loss , tax year , wholly-owned group of companies , Compare: 2004 No 35 ss ME 9(5), (5B) , ME 13(6) Section OB 69(8)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).