21Instalment arrangements in relation to late payment of company tax

##### 21 Instalment arrangements in relation to late payment of company tax (1) Where: (a) but for paragraphs 5(1)(f) and (2)(f) and subsections 5(4) and 6(2), a primary taxable amount or primary taxable amounts would exist, in relation to a sale or sales of shares under a scheme, in relation to company tax payable by a company; (b) assessments have been made of the ordinary company tax and undistributed profits tax payable by the company in relation to the year of income in which the last sale time occurred and each preceding year of income; (c) no objection has been lodged against any assessment referred to in paragraph (b) that relates to company tax payable by the company in relation to which, but for paragraphs 5(1)(f) and (2)(f) and subsections 5(4) and 6(2), a primary taxable amount or primary taxable amounts would exist; and (d) no assessment has been made of vendors recoupment tax payable by any person in relation to company tax payable by the company in relation to the year of income in which the last sale time occurred or a preceding year of income; the Commissioner may enter into an arrangement with a person or persons in relation to the payment by instalments, over a period of 12 months or such longer period as the Commissioner, in special circumstances, determines, of all the ordinary company tax and undistributed profits tax that is payable by the company in relation to the year of income in which the last sale time occurred and each preceding year of income and, where such an arrangement is entered into, the following provisions have effect: (e) subject to paragraphs (f) and (g), all payments made in accordance with the arrangement shall, for the purposes of this Act and the Assessment Act, be deemed to have been made at the time when the first payment was made in accordance with the arrangement; (f) in determining for the purposes of section 7 and subsections 9(6) and (7) whether company tax (other than additional tax payable under section 207 of the Assessment Act) that is payable by the company in relation to the year of income in which the last sale time occurred or a preceding year of income remains unpaid, payments made under the arrangement shall be deemed not to have been made; (g) in forming an opinion for the purposes of section 7 as to whether vendors recoupment tax will become payable in relation to company tax payable by the company in relation to the year of income in which the last sale time occurred or a preceding year of income, the Commissioner shall disregard payments made in accordance with the arrangement; and (h) if: (i) all payments that are required to be made under the arrangement are made in accordance with the arrangement; and (ii) after the time when the last payment is made in accordance with the arrangement, an amount that is paid to the Commissioner is deemed, under subsection 9(7), to have been applied in reduction of company tax payable by the company in relation to the year of income in which the last sale time occurred or a preceding year of income; the Commissioner shall refund to the person who made the payments under the arrangement or to the persons jointly who made the payments under the arrangement, as the case may be, so much of the aggregate of the payments made under the arrangement as is equal to the amount that is deemed to have been so applied under subsection 9(7). (2) Where, after an arrangement referred to in subsection (1) is entered into, an objection is lodged against an assessment referred to in paragraph (1)(c), paragraphs (1)(e) to (1)(h) (inclusive) do not apply, and shall be deemed never to have applied, in relation to the arrangement.