INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 5 - Collection of mining withholding tax  

SECTION 221ZD   LIABILITY OF PERSON WHO FAILS TO MAKE DEDUCTION ETC.  

221ZD(1)   [Liability to penalty]  

A person, other than the Commonwealth or an authority of the Commonwealth, who contravenes subsection 221ZB(1) in relation to a mining payment is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount of any unpaid mining withholding tax payable in respect of that mining payment.

221ZD(1A)   [Payment time]  

The person must pay the penalty amount within 21 days after the end of the month in which the mining payment was made.

221ZD(1B)   [Liability to general interest charge]  

If any of the penalty amount remains unpaid after the time by which it is due to be paid, the person 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.

Note:

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

221ZD(2)   [Recovery from payee]  

Where a person has, in relation to a mining payment, paid to the Commissioner an amount referred to in subsection (1), the person may recover as a debt, from the person or persons to whom the mining payment was made, or for whose benefit the mining payment was applied, as the case may be, an amount equal to the amount paid to the Commissioner.

221ZD(3)   [Credit]  

Where an amount payable under subsection (1) has been paid to the Commissioner:

(a) in a case to which paragraph (b) of this subsection does not apply - the person liable to pay the mining withholding tax to which the amount relates is entitled to a credit equal to that amount; and

(b) in a case where, by reason of the making of the mining payment to which the amount relates, separate mining payments are deemed by subsection 128U(4) , for the purposes of Division 11C of Part III , to have been made to, or applied for the benefit of, 2 or more persons - each of those persons is entitled to a credit of an amount that bears to the amount paid to the Commissioner the same proportion as 1 bears to the number of those persons.