Income tax: can an amount deducted under the Prescribed Payment System (PPS) from a payment to a company be entered into a franking account of the company at the time the deduction is made?

Taxation Determination TD 96/28 explains: • the meaning of 'paid' in section 160APA of the Income Tax Assessment Act 1936 (ITAA 1936); and • when an amount deducted under the PPS from a payment to a company gives rise to a credit in the franking account of the company.

The pay as you go (PAYG) withholding system replaced the PPS for the 2000-01 and later income years

TD 96/28 does not have application to income tax years commencing on or after the 1999-2000 income year.