What Is the 'PAYG Withholding Scheme

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.