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  

162-195   Reduction in penalties if notified instalment amount is less than 25% of annual GST liability  

(1)    
This section reduces your * GST instalment shortfall , for a * GST instalment quarter of an * instalment tax period applying to you, if:

(a) you are liable to pay a penalty under section 162-175 or 162-180 for a * GST instalment quarter of an * instalment tax period applying to you; and

(b) for that or any other GST instalment quarter of an * instalment tax period :

(i) you have a * notified instalment amount that is less than 25% of your * annual GST liability for the instalment tax period; or

(ii) you do not have a notified instalment amount, but the Commissioner is satisfied that, if you had such a notified instalment amount, it would be less than 25% of your annual GST liability for the instalment tax period.

(2)    
The * GST instalment shortfall is reduced by the amount worked out as follows:

where:

notified and other amounts
is the sum of:

(a) the * notified instalment amount , or, if you do not have a notified instalment amount for the * GST instalment quarter , the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; and

(b) for each of the earlier GST instalment quarters (if any) of the * instalment tax period in question:

(i) the notified instalment amount; or

(ii) if you do not have a notified instalment amount for the * GST instalment quarter - the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; and

(c) 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).

(3)    
If, because of the reduction, your * GST instalment shortfall for the * GST instalment quarter is zero or less than zero, you are not liable to pay a penalty under section 162-175 or 162-180 (as the case requires) in relation to the GST instalment quarter.

(4)    
If both this section and section 162-200 apply to a particular * GST instalment shortfall , apply this section to the shortfall before applying section 162-200 .