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 45-235   LIABILITY TO GIC ON SHORTFALL IN ANNUAL INSTALMENT  

45-235(1)    
You are liable to pay the *general interest charge under this section if:

(a) you choose to estimate the amount of your instalment (the estimated instalment amount ) for an income year under paragraph 45-115(1)(c) or former paragraph 45-175(1)(b) ; and

(b) that amount is less than 85% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

45-235(2)    

If you estimated the amount of the instalment under former paragraph 45-175(1)(b) , you are liable to pay the *general interest charge on the difference between the estimated instalment amount and the lower of the following amounts:

(a) your most recent *notional tax notified by the Commissioner at least 30 days before the day on which the instalment was due;

(b) your *benchmark tax for the income year.

45-235(3)    
If you estimated the amount of the instalment under paragraph 45-115(1)(c) , you are liable to pay the *general interest charge on the difference between the estimated instalment amount and the lowest of the following amounts:

(a) the amount of your instalment worked out using the most recent instalment rate given to you by the Commissioner before the end of the income year;

(b) your most recent *notional tax notified by the Commissioner before the end of the income year under subsection 45-320(5) ;

(c) your *benchmark tax for the income year.

45-235(4)    
You are liable to pay the charge for each day in the period that:

(a) started at the beginning of the day by which the instalment for the income year 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.

45-235(5)    
The Commissioner must give you written notice of the *general interest charge to which you are liable under subsection (2) or (3). You must pay the charge within 14 days after the notice is given to you.

45-235(6)    
If any of the *general interest charge to which you are liable under subsection (2) or (3) remains unpaid at the end of the 14 days referred to in subsection (5), you are also liable to pay the *general interest charge on the unpaid amount for each day in the period that:

(a) starts at the end of those 14 days; and

(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

(i) the unpaid amount;

(ii) general interest charge on the unpaid amount.