House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Finance, the Hon. J.S. Dawkins, M.P.)

General outline

This Bill will -

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authorise the Commissioner of Taxation to pay interest on certain refunds of income tax, recoupment tax and bank account debits tax made following a successful objection or appeal by a taxpayer;

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set the initial rate of interest to be paid at 14.026% per annum; and

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provide that there will be no entitlement to interest on amounts refunded in those cases where the Commissioner has under administrative procedures applying prior to 13 December 1982 agreed to remit additional (penalty) tax accruing on unpaid amounts pending the determination of an objection or appeal.