Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 18 - Recipient ' s entitlements and obligations  

Subdivision 18-A - Crediting withheld amounts  

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or labour mobility program

SECTION 18-35   CREDIT: PENALTY UNDER SECTION 12-415, 16-30, 16-35 OR 16-40 OR RELATED GENERAL INTEREST CHARGE  

18-35(1)    

If an entity has paid:

(a)    

an amount of penalty under section 16-30 or 16-40 to the Commissioner for a *withholding payment covered by Subdivision 12-F or 12-H ; or

(b)    

an amount of *general interest charge under section 298-25 for the penalty;

the entity liable to pay the *withholding tax for the withholding payment is entitled to a credit equal to the amount of penalty, or general interest charge, as appropriate.

18-35(1AA)    

If an entity has paid:

(a)    

an amount of penalty under section 16-30 or 16-35 to the Commissioner for a * withholding payment covered by Subdivision 12-FC (labour mobility programs); or

(b)    

an amount of * general interest charge under section 298-25 for the penalty;

the entity liable to pay the *labour mobility program withholding tax for the withholding payment is entitled to a credit equal to the lesser of:

(c)    the amount of the penalty, or general interest charge, as appropriate; and

(d)    

the amount of labour mobility program withholding tax (and any general interest charge under section 840-910 of the Income Tax Assessment Act 1997 ) in relation to the withholding payment, reduced by:

(i) any credits from an application of section 18-33 in relation to the withholding payment; and

(ii) any credits from a previous application of this subsection in relation to the withholding payment.

18-35(1A)    

If an entity has paid:

(a)    an amount of penalty under section 12-415 to the Commissioner for a failure to give a notice, or to make details available on a website, as required by section 12-395 ; or

(b)    an amount of *general interest charge under section 298-25 for the penalty;

the entity liable to pay the *managed investment trust withholding tax in relation to the amount (the relevant amount ) giving rise to the penalty is entitled to a credit equal to the lesser of:

(d)    the amount of penalty, or general interest charge, as appropriate; and

(e)    the amount of managed investment trust withholding tax (and any general interest charge under section 840-810 of the Income Tax Assessment Act 1997 ) in relation to the relevant amount.

Remission

18-35(2)    
If:

(a)    

an entity has paid to the Commissioner an amount of penalty mentioned in paragraph (1)(a) , (1AA)(a) or (1A)(a) ; and

(b)    

the Commissioner remits the whole or a part of the amount of the penalty under section 298-20 ;

then:

(c)    

any credit under subsection (1) , (1AA) or (1A) relating to the amount paid to the Commissioner is reduced by the amount that is remitted; and

(d)    the Commissioner must pay to the entity an amount equal to the amount that is remitted.

18-35(3)    
If:

(a)    

an entity has paid to the Commissioner an amount of *general interest charge mentioned in paragraph (1)(b) , (1AA)(b) or (1A)(b) ; and

(b)    the Commissioner remits the whole or a part of the amount of the charge under section 8AAG ;

then:

(c)    

any credit under subsection (1) , (1AA) or (1A) relating to the amount is reduced by the amount that is remitted; and

(d)    the Commissioner must pay to the entity an amount equal to the amount that is remitted.