PART 3
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ASSESSMENT AND COLLECTION OF SURCHARGE
SECTION 11
ASSESSMENT OF LIABILITY TO PAY SURCHARGE
11(1)
Commissioner to assess surcharge.
For each financial year (being a financial year that ends before 1 July 2005) in which termination payments are made to or for a taxpayer, the Commissioner must make an assessment that:
(a)
calculates the taxpayer
'
s adjusted taxable income; and
(b)
if the adjusted taxable income is greater than the surcharge threshold:
(i)
calculates the termination payments; and
(ii)
calculates the rate of surcharge that applies to the taxpayer; and
(iii)
specifies the amount of the surcharge payable or, if no surcharge is payable, states that a nil amount of surcharge is payable; and
(c)
if the adjusted taxable income is equal to or less than the surcharge threshold
-
states that a nil amount of surcharge is payable.
History
S 11(1) amended by No 102 of 2005, s 3 and Sch 1 item 41, by inserting
"
(being a financial year that ends before 1 July 2005)
"
after
"
each financial year
"
, effective 12 August 2005.
S 11(1) substituted by No 131 of 1999, s 3 and Sch 3 item 2, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years. S 11(1) formerly read:
11(1)
Commissioner to assess surcharge.
For each financial year in which termination payments are made to or for a taxpayer, the Commissioner must:
(a)
calculate the taxpayer
'
s adjusted taxable income; and
(b)
if the adjusted taxable income is greater than the surcharge threshold:
(i)
calculate the termination payments; and
(ii)
calculate the rate of surcharge that applies to the taxpayer; and
(iii)
make an assessment, directed to the taxpayer, of any surcharge payable.
11(2)
When surcharge is payable.
Surcharge assessed under subsection (1) is payable within one month after the day on which the assessment is made.
Note:
For provisions about collection and recovery of termination payments surcharge and other related amounts, see Part 4-15 in Schedule 1 to the
Taxation Administration Act 1953
.
History
S 11(2) amended by No 44 of 2000, s 3 and Sch 3 item 69, by adding the Note, effective 22 December 1999.
11(3)
Notice of assessment.
When an assessment (including an amended assessment) is made, the Commissioner must, subject to subsection (4), give notice of the assessment to the taxpayer.
History
S 11(3) substituted by No 131 of 1999, s 3 and Sch 3 item 3, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years. S 11(3) formerly read:
11(3)
Information to be included in an assessment.
An assessment of surcharge must explain the calculations on which the assessment was based, including particulars of the adjusted taxable income for the financial year, the termination payments and the amount of surcharge, and must state the day by which the surcharge is payable.
11(4)
No notice if nil amount assessed.
The Commissioner is not required under subsection (3) to give a notice of an assessment if the assessment states that a nil amount of surcharge is payable.
History
S 11(4) substituted by No 131 of 1999, s 3 and Sch 3 item 3, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years. S 11(4) formerly read:
11(4)
Copy of assessment to be given to taxpayer.
When an assessment (including an amended assessment) is made, the Commissioner must give a copy to the taxpayer.
11(5)
Particulars in notice of assessment.
A notice of assessment must include particulars of the matters contained in the assessment under subsection (1).
History
S 11(5) substituted by No 131 of 1999, s 3 and Sch 3 item 3, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years. S 11(5) formerly read:
11(5)
Nil assessment.
If the Commissioner calculates that no surcharge is payable by a taxpayer for a financial year, the calculation is taken, for the purposes of this Act other than subsection (4), to be an assessment on which a nil amount of surcharge was due and payable.
11(6)
How a notice is to be given.
A notice of assessment may be given in any manner prescribed by the regulations.
History
S 11(6) inserted by No 131 of 1999, s 3 and Sch 3 item 3, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years.
11(7)
Non-compliance not to affect validity of assessment.
The validity of any assessment is not affected by any non-compliance with a provision of this Act.
History
S 11(7) inserted by No 131 of 1999, s 3 and Sch 3 item 3, applicable to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years.
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