Taxation Administration Act 1953

The Commissioner must give a written notice to the individual on a particular day (the credit notice day) if, had the discharge mentioned in paragraph 18‑165(c) (and all previous discharges of the company’s liability mentioned in that paragraph) occurred before the tax notice day:

the individual would not have been required to pay the *PAYG withholding non‑compliance tax in relation to the company for the income year; or

the amount of PAYG withholding non‑compliance tax the individual would have been required to pay would have been less than the actual amount of PAYG withholding non‑compliance tax.

Subsection 18‑180(2) provides that the Commissioner must not give a notice to the individual in certain circumstances.

The amount of PAYG withholding non‑compliance tax may be limited by:

the conditions in subsections 18‑125(1) and (2) or 18‑135(1) to (6); or

the limits on the amount of the tax in subsection 18‑125(3) or 18‑135(7).

In working out the actual amount of the tax for the purposes of paragraph (1)(b), have regard to other credits to which the individual is entitled under this section or section 18‑175. See subsection 18‑180(1).

The individual is entitled to a credit if the Commissioner gives a written notice to the individual under subsection (1).

The individual becomes entitled to the credit on the day the Commissioner gives the notice to the individual.

The amount of the credit is the amount stated in the notice.

In a case to which paragraph (1)(a) applies, the amount stated must be the amount of the *PAYG withholding non‑compliance tax.

In any other case, the amount stated:

must not exceed the amount of the *PAYG withholding non‑compliance tax; and

must not exceed the amount of the discharge mentioned in paragraph 18‑165(c); and

must not be less than the amount by which:

the amount of the PAYG withholding non‑compliance tax; exceeds

the amount that would have been the amount of the PAYG withholding non‑compliance tax had the discharge mentioned in paragraph 18‑165(c) (and all previous discharges of the company’s liability mentioned in that paragraph) occurred before the tax notice day.

In determining the amount to state in the notice in a case to which paragraph (1)(a) does not apply, the Commissioner must have regard to what is fair and reasonable in the circumstances.