What Is the 'PAYG Withholding Scheme

question 27

Multiple Choice

What is the 'PAYG withholding scheme'?

• A)A scheme whereby partners and sole traders pay instalments of tax based on the previous year's tax assessment.
• B)A scheme in which a business withholds and periodically pays to the Australian Tax Office income tax payable on payments to employees.
• C)A scheme whereby corporations pay instalments of tax for a year, based on the previous year's tax assessment.
• D)A scheme in which a business withholds and periodically pays to the Australian Tax office a sum representing its estimated yearly tax liability.