A New Tax System (Pay As You Go) Act 1999 (178 of 1999)

Schedule 2   Running balance accounts, general interest charge and related matters

Part 2   General interest charge

Income Tax Assessment Act 1936

48   Section 220AAW

Repeal the section, substitute:

220AAW Large remitters - non-electronic payment

(1) A large remitter that pays an amount other than by electronic transfer is liable to a penalty of the greater of:

(a) $500; or

(b) assuming that the general interest charge applied to the amount that was paid other than by electronic transfer - an amount equal to the general interest charge that would be payable for each day in a period of 7 days starting at the beginning of the day on which the payment became due.

Note: The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953.

(2) However, the Commissioner may remit some or all of the penalty.

(3) The penalty becomes due for payment on the day the payment was made.

(4) If any of the penalty remains unpaid after the time by which it is due to be paid, the large remitter is liable to pay the general interest charge on the unpaid penalty amount for each day in the period that:

(a) started at the beginning of the day by which the penalty amount was due to be paid; 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 penalty amount;

(ii) general interest charge on any of the penalty amount.

(5) This section does not apply to an exempt Australian government agency (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997).