Clause 49 - Amendment of section 201.

Withholding tax responsibility: substitution of 'payee' for 'resident' and extended limitation for correction statements for deduction defaults.

The amendment substitutes the term payee for 'resident' in the provisos to sub sections (1) and (1A) of section 201, thereby linking the non deemed assessee exception to the identity of the payee. It further provides that, for correction statements delivered under the proviso to sub section (3) of section 200, the limitation to make an order deeming a person an assessee in default is the later of seven years from the end of the financial year of payment or credit, or two years from the end of the financial year in which the correction statement is delivered.