Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 5   AMENDMENTS RELATING TO THE PAYMENT OF INTEREST ON OVERPAYMENTS AND EARLY PAYMENTS

Part 2   TAXATION (INTEREST ON OVERPAYMENTS) ACT 1983

22   After Part III

Insert:

"PART IIIA - INTEREST ON OVERPAYMENTS RESULTING FROM CERTAIN REMISSIONS, REFUNDS AND CREDITS

Entitlement to interest

"12A. (1) If:

(a) the Commissioner, as a result of a request by a person:

(i) remits, under subsection 207(1A), 207A(4), 221AY(5), 221AZE(5), 221AZP(4) or 221YDB(4) of the Tax Act, the whole or part of an amount that has been paid to the Commissioner; or

(ii) refunds the whole or part of an amount under subsection 221AQ(3), 221AR(6), 221AU(4), 221AV(4), 221AW(5), 221AX(14), 221AZL(2) or 221AZQ(1) of the Tax Act; or

(iii) refunds or credits the whole or part of an amount under subsection 221YBA(6), 221YCA(2) or 221YG(2) of the Tax Act; or

(iv) refunds the whole or part of a payment made by the person on account of:

(A) income tax; or

(B) HEC assessment debt; or

(C) FS assessment debt; or

(D) additional tax under Part VII of the Tax Act; or

(E) interest under section 102AAM of the Tax Act; or

(F) provisional tax; or

(G) an instalment of provisional tax within the meaning of section 221YA of the Tax Act; or

(H) an amount mentioned in subsection 221AP(1) of the Tax Act; or

(I) an amount mentioned in paragraph 221AZD(b) of the Tax Act; or

(J) an instalment under subsection 221AZK(2) of the Tax Act; and

(b) the remission, refund or crediting takes place more than 30 days after the day on which the request is made;

interest is payable by the Commissioner to the person on the amount remitted, refunded or credited, calculated in respect of the period applicable under section 12B at the rate specified in section 12C.

"(2) A reference in subparagraph (1)(a)(iv) to a person making a payment on account of:

(a) income tax; or

(b) HEC assessment debt; or

(c) FS assessment debt;

does not include a reference to the making of a deduction or payment under Part VI of the Tax Act or section 20B of the Loan (Income Equalisation Deposits) Act 1976.

Period of interest

"12B. The interest is payable for the period from the beginning of the 30th day after the day on which the request was made until the end of the day on which the remission, refund or crediting takes place.

Rate of interest

"12C. Interest under this Part is payable at such annual rate or rates as are provided for by section 214A of the Tax Act, less 4 percentage points.

"PART IIIB - ADJUSTMENT OF INTEREST

Interest to be in multiples of 1 cent

"12D. If an amount of interest calculated under this Act is not a multiple of 1 cent, the amount of interest is to be:

(a) if the amount of interest is a multiple of 0.5 cent - increased by 0.5 cent; or

(b) in any other case - increased or decreased, as the case requires, to the nearest multiple of 1 cent.

Small amounts of interest not to be paid

"12E. If, apart from this section, an amount of interest:

(a) would be payable to a person under this Act; and

(b) is less than 50 cents;

the amount is not payable to the person.

Adjustment where amount to be paid by, or refunded to, person does not exceed 49 cents

"12F. If:

(a) an amount of interest payable to a person under this Act is applied in discharge of a liability of the person to the Commonwealth; and

(b) the amount (if any) remaining to be paid (the 'net amount') by the person in relation to that liability is less than 50 cents;

the net amount is not payable by the person.".