Published on 01 Sep 1999
| Took place at Menzies Hotel
The new instalment system will radically change the way that companies, funds and individuals have made tax payments in the past and will have a significant impact on cash flow arrangements. The following items will be discussed: calculating the instalment; varing the instalment rate; timing of instalments; transitional arrangements; traps for the unwary.
PAYG instalment arrangements
Author(s): Lynda BRUMM On 30 June 1999, the Government introduced into Parliament A New Tax System (Taxation Laws Amendment) Bill (No. 1) 1999. This Bill proposes to implement the new Pay As You Go (PAYG) withholding and instalment systems announced on 13 August 1998 as part of the Government's tax reform package. The PAYG instalment system affects the payment of income tax by individuals, companies, superannuation funds, certain trading trusts and in some cases, trustees who have a liability to pay tax. It will replace the existing provisional tax and company tax instalment systems. This paper only focuses on the PAYG instalment system which is concerned with the payment of an entity's own tax liability.