A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 13   Delayed refund interest

Taxation (Interest on Overpayments and Early Payments) Act 1983

5   After Part IIIA

Insert:

Part IIIAA - Delayed refund interest on running balance account (RBA) surpluses

12AA Entitlement to interest for RBA surpluses after notification of BAS amount

If:

(a) the Commissioner has allocated a BAS amount to an RBA of an entity; and

(b) section 12AB does not apply (that section is about remission of penalties); and

(c) under subsection 8AAZLF(1) of the Taxation Administration Act 1953, the Commissioner is required to refund to the entity the whole or part of an RBA surplus for that RBA; and

(d) the refund takes place after the RBA interest day;

then interest is payable by the Commissioner to the entity on the amount refunded.

Note: Section 12AF defines BAS amount , RBA surplus and RBA interest day .

12AB Entitlement to interest for RBA surpluses after request for remission

If:

(a) the Commissioner has allocated a BAS amount to an RBA of an entity; and

(b) the entity requests the Commissioner to remit a penalty of which the entity has been notified by the Commissioner; and

(c) as a result of the Commissioner remitting the penalty, the Commissioner is required, under subsection 8AAZLF(1) of the Taxation Administration Act 1953, to refund to the entity the whole or part of an RBA surplus for that RBA; and

(d) the refund takes place after the RBA interest day;

then interest is payable by the Commissioner to the entity on the amount refunded.

Note: Section 12AF defines BAS amount , RBA surplus and RBA interest day .

12AC Entitlement to interest for RBA surpluses after request for refund

If:

(a) the Commissioner has allocated a payment to an RBA of an entity; and

(b) the Commissioner has allocated or intends to allocate a BAS amount to that RBA; and

(c) under subsection 8AAZLF(2) of the Taxation Administration Act 1953, the Commissioner, as a result of a request by the entity, is required to refund the whole or part of an RBA surplus for that RBA; and

(d) the refund takes place after the RBA interest day;

then interest is payable by the Commissioner to the entity on the amount refunded.

Note: Section 12AF defines BAS amount , RBA surplus and RBA interest day .

12AD Period of interest for RBA surpluses

Interest under this Part is payable for the period from the end of the RBA interest day until the end of the day on which the refund takes place.

12AE Rate of interest for RBA surpluses

Interest under this Part is payable at the annual rate or rates provided for in section 214A of the Tax Act.

12AF Definitions

In this Part:

BAS amount has the same meaning as in subsection 995-1(1) of the Tax Act.

RBA interest day for an RBA surplus means the 14th day after the latest of the following days:

(a) either:

(i) if section 12AA applies - the day on which the surplus arises; or

(ii) if section 12AB or 12AC applies - the day on which the relevant request is made;

(b) if, by the day applicable under paragraph (a), the person has not given the Commissioner a notification that is required for the refund under section 8AAZLG of the Taxation Administration Act 1953 and that is accurate so far as it relates to the refund - the day on which that notification is given to the Commissioner;

(c) unless the Commissioner has given a direction under subsection 8AAZLH(3) of the Taxation Administration Act 1953 - the day on which the person nominates a financial institution account for the purposes of that section.

RBA surplus has the same meaning as in section 8AAZA.