Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986

Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986.

The Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986 is an Act that imposes income tax on avoided withholding tax amounts in relation to certain securities and agreements. The Act received Royal Assent on June 24, 1986, and it came into operation on the same day as the Taxation Laws Amendment Act (No. 2) 1986.

The Act defines a key term as "Assessment Act," which refers to the Income Tax Assessment Act 1936. It also states that the Assessment Act is incorporated and read as one with this Act. The tax imposed under this Act is levied on the avoided withholding tax amount referred to in subsection 128NA(4) of the Assessment Act.

The amount of tax imposed by this Act is equal to the avoided withholding tax amount. This means that the tax rate will be the same as the rate at which the avoided withholding tax was previously deducted. The purpose of the Act is to ensure that individuals and entities are not unfairly denied income due to uncollected withholding taxes.

The Act aims to address a specific issue in the financial sector, where certain securities and agreements were subject to withholding taxes without being properly reported or remitted. By imposing income tax on these avoided amounts, the Act seeks to prevent future instances of underpayment and ensure compliance with tax laws.