A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-7 - Special rules mainly about returns, payments and refunds  

Note:

The special rules in this Part mainly modify the operation of Part 2-7 , but they may affect other Parts of Chapter 2 in minor ways.

Division 162 - Payment of GST by instalments  

Subdivision 162-D - Penalty payable in certain cases if varied instalment amounts are too low  

162-185   Shortfall in GST instalments worked out on the basis of estimated annual GST amount  

(1)    
You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if:

(a) you have a * varied instalment amount for the GST instalment quarter; and

(b) you are not liable to pay a penalty, for the GST instalment quarter, under section 162-175 or 162-180 ; and

(c) the amount worked out by multiplying your * estimated annual GST amount relating to the GST instalment quarter by the * appropriate percentage for the GST instalment quarter exceeds the sum of:

(i) the varied instalment amount; and

(ii) all your other * GST instalments (if any) for earlier GST instalment quarters of the * instalment tax period in question; and

(iii) if the instalment tax period is only part of a * financial year - your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).

(2)    
The amount of the penalty, for a particular day, is worked out by applying the *general interest charge :

(a) for each day in the period in section 162-190 ; and

(b) in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953 ;

to your * GST instalment shortfall , under this section, for the * GST instalment quarter .

(3)    
Your GST instalment shortfall , under this section, for the * GST instalment quarter is the amount of the excess referred to in paragraph (1)(c).