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 45-230   LIABILITY TO GIC ON SHORTFALL IN QUARTERLY INSTALMENT WORKED OUT ON THE BASIS OF VARIED RATE  

45-230(1)    
You are liable to pay the *general interest charge under this section if:

(a) you use an instalment rate (the varied rate ) under section 45-205 to work out the amount of your instalment for an *instalment quarter (the variation quarter ) in an income year; and

(b) the varied rate is less than 85% of your *benchmark instalment rate for that income year that the Commissioner works out under Subdivision 45-K .

45-230(2)    
You are liable to pay the *general interest charge on the amount worked out as follows:

where:

rate discrepancy
means the difference between the varied rate and the lesser of:

(a) the most recent instalment rate given to you by the Commissioner before the end of the variation quarter; and

(b) your *benchmark instalment rate for that income year.

credit adjustment
means:

(a) if, as a result of using the varied rate for the variation quarter, you claimed a credit under section 45-215 - the amount worked out as follows:

Rate     discrepancy

×

Your *instalment income for the earlier instalment quarters in that income year

or the amount of the credit, whichever is less; and

(b) otherwise - nil.

45-230(2A)    

If the variation quarter is in a *consolidation transitional year for you as a *subsidiary member of a *consolidated group, a reference in subsection (2) to:

(a) your *instalment income for the variation quarter; or

(b) your instalment income for the earlier instalment quarters in the income year;

is taken to be a reference to so much of that income as is reasonably attributable to the period in that quarter or those quarters (as appropriate) during which you are not a subsidiary member of the group.

45-230(3)    
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 variation 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.

45-230(4)    
The Commissioner must give you written notice of the *general interest charge to which you are liable under subsection (2). You must pay the charge within 14 days after the notice is given to you.

45-230(5)    
If any of the *general interest charge to which you are liable under subsection (2) remains unpaid at the end of the 14 days referred to in subsection (4), 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.