INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 6A - Deductions from certain repayments of farm management deposits  

Note:

In addition to the obligations imposed on financial institutions in relation to farm management deposits under this Division, they are required to report information about such deposits to the Department of Primary Industries and Energy under section 264AA .

SECTION 221ZXG   PENALTY TAX PAYABLE IF ASSESSABLE FMD AMOUNTS UNDERSTATED  

221ZXG(1)   [Liability to general interest charge]  

If:

(a) in a statement given to a financial institution, a depositor states incorrectly that there will be no assessable FMD amount, or understates what the assessable FMD amount will be, in relation to a repayment of some or all of a farm management deposit; and

(b) as a result:

(i) the financial institution is not required to make any deduction under section 221ZXB ; or

(ii) the financial institution is required under that section to deduct less than would have been required if there had been a statement of the correct assessable FMD amount;

the depositor is liable to pay general interest charge, for each day in the period in subsection (2), on:

(c) if subparagraph (b)(i) applies - the amount that would have been required to be deducted if there had been a statement of the correct assessable FMD amount.

Note:

The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .

221ZXG(2)   [Days for which charge payable]  

The depositor is liable to pay the general interest charge for each day in the period that:

(a) started at the beginning of the day on which the repayment was made; and

(b) finishes at the end of the day before the making of the owner's assessment for the year of income in which the repayment is made.