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 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-G - General interest charge payable in certain cases if instalments are too low  

SECTION 45-233   REDUCTION IN GIC LIABILITY UNDER SECTION 45-232 IF SHORTFALL IS MADE UP IN LATER INSTALMENT  

45-233(1)    
This section reduces the amount (the shortfall ) on which you are liable to pay the *general interest charge under subsection 45-232(2) if, for a later *instalment quarter (the later quarter ) that is in the same income year as the variation quarter, the amount worked out as follows is a negative amount:

*Acceptable amount of your instalment for the later quarter

−

Actual amount of your instalment       for the later quarter

That amount (expressed as a positive number) is called the top up .

45-233(2)    
For the purposes of the formula in subsection (1):

actual amount of your instalment for the later quarter
means:

(a) the amount of your instalment for the later quarter, as worked out under section 45-112 ; or

(b) if you claimed a credit under section 45-420 for the later quarter - the amount of the credit, expressed as a negative amount.

Amount of the reduction

45-233(3)    
The shortfall is reduced by applying so much of the top up as does not exceed the shortfall.

45-233(4)    
However, if some of the top up has already been applied (under any other application or applications of this section) to reduce the amount on which you are liable to pay the *general interest charge under subsection 45-232(2) as it applies to a different *instalment quarter, the shortfall is reduced by applying so much of the top up as has not already been applied, and does not exceed the shortfall.

Period for which reduction has effect

45-233(5)    
The reduction has effect for each day in the period that:

(a) started at the beginning of the day by which the instalment for the later quarter was due to be paid; and

(b) finishes at the end of the day on which your assessed tax for the income year is due to be paid.