If tax payable by a person remains unpaid after the usual due date, the person is liable to pay a penalty at the rate of 16% per year on the unpaid amount. The penalty is calculated from the usual due date, or from a later date determined by the Commissioner if the Commissioner has granted an extension, or permitted payment by instalments, under section 66.

S 68(1) amended by No 191 of 1992, s 33, effective 1 October 1992, by substituting 16% for 20%.

The fact that a judgment is entered or given in a court for the payment of tax, or of a composite amount that includes tax, does not of itself cause the tax to stop being unpaid for the purposes of subsection (1).

If the judgment debt bears interest, the penalty payable under subsection (1) is reduced by the following amount:

  Interest on         Tax component of judgment debt
 judgment debt   x    -------------------------------
                              Judgment debt

            

The Commissioner may remit some or all of the penalty in any of the following cases:

(a)  the Commissioner is satisfied that the person did not contribute to the delay in payment and has taken reasonable steps to mitigate the causes of the delay;

(b)  the Commissioner is satisfied that:

(i) the person contributed to the delay but has taken reasonable steps to mitigate the causes of the delay; and

(ii) having regard to the nature of the things that caused the delay, it would be fair and reasonable to remit some or all of the penalty;

(c)  the Commissioner is satisfied that there are special circumstances that make it reasonable to remit some or all of the penalty.

In this section:

``tax'' includes penalty under Part 9;

``usual due date'' means the date on which tax becomes due for payment, ignoring any extension of time granted under section 66.