Taxation Laws Amendment Act (No. 3) 1999 (Cth)
This compilation was prepared on 6 August 2002
[Schedule 2 (item 87) repealed Schedule 1 (items 84, 85);
Schedule 2 (item 88) repealed Schedule 1 (items 355‑357)
Schedule 2 (item 89) amended Schedule 1 (item 398)
Schedule 2 (items 90, 91) amended Schedule 1 (item 399)
Schedule 2 (item 92) Application of amendments
Schedule 2 (item 93) Transitional—pre‑1 July 1999 debts
Schedule 2 (items 87 to 93) commenced on 22 December 1999]
[Schedule 12 (item 55) amended Items 165 and 167 of Schedule 1
Schedule 12 (item 55) commenced on 1 July 1999]
Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra
Contents
[
The Parliament of Australia enacts:
This Act may be cited as the
Taxation Laws Amendment Act (No. 3) 1999 .
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
If Part 2 of Schedule 1 to the
(3) Subject to subsections (4) and (5), Schedule 1 commences on 1 July 1999.
(4) An item of Schedule 1 that is specified in the third column of the following table commences immediately after the commencement of the matching item in the second column:
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Items 3 and 4 of Schedule 3 are taken to have commenced immediately after the commencement of section 2 of the
Taxation Laws Amendment Act (No. 1) 1998 .(6) Items 5 and 6 of Schedule 3 are taken to have commenced immediately after the commencement of item 6 of Schedule 2 to the
Taxation Laws Amendment (Private Health Insurance Incentives) Act 1997 .(7) Items 7 and 8 of Schedule 3 are taken to have commenced immediately after the commencement of item 322 of Schedule 1 to the
Social Security Legislation Amendment (Parenting and Other Measures) Act 1997 .
Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1 — Running balance accounts, general interest charge and related matters
Repeal the section, substitute:
(1) If any of the tax, or the additional tax under Part VIII, which a person is liable to pay remains unpaid after the time by which the tax or the additional tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the tax or the additional tax 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 tax or the additional tax;
(ii) general interest charge on any of the tax or the additional tax.
(2) The amount of the general interest charge is taken to be
additional tax payable under this section.Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “section 93 or”.
Omit “section 93 or”.
Omit all the words after paragraph (b), substitute “the employer is entitled to a credit equal to the amount so paid.”.
Repeal the subsection.
Insert:
GIC period , in relation to an instalment in relation to a standard year of tax, means:
(a) in the case of a first instalment—the period starting at the beginning of 29 July in the year of tax and finishing at the end of 28 October in the year of tax; or
(b) in the case of a second instalment—the period starting at the beginning of 29 October in the year of tax and finishing at the end of 28 January in the year of tax; or
(c) in the case of a third instalment—the period starting at the beginning of 29 January in the year of tax and finishing at the end of 28 April in the next succeeding year of tax.
Repeal the definition.
Omit “additional tax, by way of penalty, in respect of the penalty period, is due and payable by the employer to the Commissioner at the rate of 16% per annum”, substitute “the employer is liable to pay, for each day in the GIC period, the general interest charge”.
Insert:
(4A) The amount of the general interest charge is taken to be
additional tax payable under subsection (4).
Repeal the subsections.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
12
Subsection 6(1) (paragraph (ab) of the definition of assessment) Repeal the paragraph.
Insert:
failure to notify penalty means the penalty worked out under Division 2 of Part IIA of theTaxation Administration Act 1953 .
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Insert:
late reconciliation statement penalty means the penalty worked out under Division 3 of Part IIA of theTaxation Administration Act 1953 .
16
Section 102AAB (definition of basic statutory interest rate) Omit “, less 4 percentage points,”.
Omit “, less 4 percentage points”.
Omit “207, 207A,”.
Omit “him”, substitute “the person”.
Repeal the subsection, substitute:
(3) If any of the withholding tax which a person is liable to pay 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 amount for each day in the period that:
(a) started at the beginning of the day by which the withholding tax 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 withholding tax;
(ii) general interest charge on any of the withholding tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsection.
Omit “Without limiting the generality of subsection (4), where”, substitute “If”.
Omit “additional tax is due and payable by a person under subsection (3) in relation to an amount of withholding tax”, substitute “a person is liable to pay the general interest charge on an amount of withholding tax which is”.
Omit “additional tax as”, substitute “general interest charge as”.
Repeal the subsection.
Omit “, and any unpaid additional tax payable under this section,”.
Omit “207, 207A,”.
Omit all the words after paragraph (b), substitute “the owner is entitled to a credit equal to the amount so deducted.”.
Omit “207, 207A,”.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsection.
Omit “Where, under subsection (2)”, substitute “If, under section 8AAZL of the
Taxation Administration Act 1953 ”.
Omit “the provisions of this section”, substitute “section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the paragraph, substitute:
(b) an amount, in respect of a credit under section 221AZM, applied by the Commissioner against a liability of the company; or
Repeal the subparagraph, substitute:
(ii) the Commissioner applies an amount, in respect of a credit under section 221AZM, against a liability of the company; and
Omit “subsection 160AN(2)”, substitute “section 8AAZL of the
Taxation Administration Act 1953 ”.
Add:
(3) If any of the franking deficit tax which a company is liable to pay remains unpaid after the time by which the franking deficit tax is due to be paid, the company is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the franking deficit tax 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 franking deficit tax;
(ii) general interest charge on any of the franking deficit tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Add:
(2) If any of the deficit deferral tax which a company is liable to pay remains unpaid after the time by which the deficit deferral tax is due to be paid, the company is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deficit deferral tax 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 deficit deferral tax;
(ii) general interest charge on the deficit deferral tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Add:
(2) If any of the franking additional tax which a company is liable to pay remains unpaid after the time by which the franking additional tax is due to be paid, the company is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the franking additional tax 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 franking additional tax;
(ii) general interest charge on the franking additional tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “207, 207A,”.
Omit all the words after paragraph (b), substitute:
; and (c) the company has not paid the excess amount of the franking deficit tax by the 30th day after the day on which the assessment was amended;
the company is liable to pay the general interest charge on the unpaid amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Add:
(3) The company is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the 30th day after the day on which the assessment was amended; 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 excess amount of the franking deficit tax;
(ii) general interest charge on any of the excess amount.
Add:
Note: A person who fails to pay on time some or all of the penalty is liable to pay the general interest charge on the unpaid amount: see section 163AA.
Omit “207, 207A,”.
Insert:
A person who fails to pay some or all of a penalty under section 163A by the time by which the penalty is due to be paid is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the penalty 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;
(ii) general interest charge on any of the penalty.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit all the words after paragraph (c), substitute:
the person is liable to pay the general interest charge on the amount in subsection (2) and the amount of the charge is taken to be
additional tax payable under this section.Note: The heading to section 163B is altered by omitting “
Late lodgement penalty—additional tax for ” and substituting “Late lodgment of returns by ”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1A) The person is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day by which the return was required to be furnished; and
(b) finishes at the end of the day before the return is furnished, or the day before the Commissioner made the assessment, whichever is earlier.
Repeal the subsection.
Repeal the subsection.
Omit “204, 205, 206, 207, 207A, 208, 209, 214,”, substitute “205, 206,”.
52
Subsection 163B(10) (definition of income tax crediting amount) Omit all the words after “an amount”, substitute “of a credit applied under section 8AAZL of the
Taxation Administration Act 1953 against the income tax;”.
Repeal the section.
Omit “interest to the Commissioner, calculated in accordance with subsection (4),” (wherever occurring), substitute “the general interest charge, for each day in the period in subsection (4),”.
Note: The heading to section 170AA is altered by omitting “
Payment of interest by ” and substituting “Liability of ”.
Omit “interest”, substitute “general interest charge”.
Omit “interest”, substitute “general interest charge”.
Omit “interest to the Commissioner, calculated in accordance with subsection (4),”, substitute “the general interest charge, for each day in the period in subsection (4),”.
Omit “the interest referred”, substitute “the general interest charge referred”.
Omit “Interest”, substitute “The general interest charge”.
Omit “shall be calculated”, substitute “is payable for each day in the period that”.
Omit “in respect of the period commencing on”, substitute “started at the beginning of”.
Omit “amendment,”, substitute “amendment; and”.
Omit all the words after subparagraph (ii).
Repeal the paragraph, substitute:
(b) finishes at the end of the day before the current amended assessment or the amended determination is made.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsection, substitute:
(5) If general interest charge (the
primary general interest charge ) is payable by a taxpayer under subsection (1), (1A) or (3), the Commissioner may give a notice to the taxpayer specifying a date after which general interest charge will apply under subsection (5A). The specified date must be at least 30 days after the notice is given.(5A) If the primary general interest charge remains unpaid after the day specified in the notice, the taxpayer is liable to pay general interest charge on the unpaid amount.
(5B) The taxpayer is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day specified in the notice; 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) primary general interest charge;
(ii) general interest charge on primary general interest charge.
Omit “interest” (wherever occurring), substitute “the general interest charge”.
Repeal the subsections, substitute:
(9) Unless the contrary intention appears, in sections 172, 205, 206, 215, 216, 254, 255, 258, 259 and 265, but not in any other section,
income tax ortax includes the general interest charge payable under this section.
Omit “sections 170AA, 207 and 207A”, substitute “provisions of this Act that apply the general interest charge”.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Add:
(3) If any of the tax which a person is liable to pay remains unpaid after the time by which the tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the tax 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 tax;
(ii) general interest charge on any of the tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the sections.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Repeal the section.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Repeal the subsection, substitute:
(1) In this section:
Treasury Note yield rate has the meaning given by section 8AAD of theTaxation Administration Act 1953 .
Omit “170AA, 207A,”.
Repeal the paragraphs.
Omit all the words after “for any”, substitute “day is the Treasury Note yield rate for that day.”.
Repeal the subsections.
88
Subsection 215(6) (paragraphs (a) and (b) of the definition of tax) Repeal the paragraphs, substitute:
(a) the general interest charge under a provision of this Act; and
(b) additional tax under Part VII; and
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
92
Subsection 218(6B) (paragraph (a) of the definition of tax) Repeal the paragraph, substitute:
(a) additional tax under Part VII;
93
Subsection 218(6B) (after paragraph (a) of the definition of tax) Insert:
(ab) the general interest charge under a provision of this Act;
94
Subsection 218(6B) (paragraph (ba) of the definition of tax) Omit “, 170AA or 207A”.
95
Subsection 218(6B) (subparagraph (c)(ii) of the definition of tax) Repeal the subparagraph, substitute:
(ii) additional tax under Part VII;
96
Subsection 218(6B) (after subparagraph (c)(ii) of the definition of tax) Insert:
(iia) the general interest charge under a provision of this Act;
97
Subsection 218(6B) (subparagraph (c)(iv) of the definition of tax) Omit “, 170AA or 207A”.
98
Subsection 218(6B) (at the end of the definition of tax) Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit “and any additional tax under section 207 or interest under section 207A”, substitute “any general interest charge under a provision of this Act”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Repeal the subsections, substitute:
(3) If any of the amount (the
deducted amount ) which a large remitter must pay to the Commissioner 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 amount for each day in the period that:
(a) started at the beginning of the day by which the deducted 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 deducted amount;
(ii) general interest charge on any of the deducted amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “a penalty”, substitute “the general interest charge”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1) A large remitter that must pay an amount to the Commissioner under section 220AAE must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2) If the large remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the large remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the large remitter, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(3) The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAG accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
Omit “not later than the 7th day”, substitute “by the end of the 21st day”.
Add:
Note: Subsection 36(2) of the
Acts Interpretation Act 1901 does not apply for the purposes of this subsection.
Repeal the subsections, substitute:
(3) If any of the amount (the
deducted amount ) which a medium remitter must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the medium remitter is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deducted 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 deducted amount;
(ii) general interest charge on any of the deducted amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1) A medium remitter that must pay an amount to the Commissioner under section 220AAM must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2) If the medium remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the medium remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the medium remitter, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(3) The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAO accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
Omit “not later than the 7th day”, substitute “by the end of the 21st day”.
Add:
Note: Subsection 36(2) of the
Acts Interpretation Act 1901 does not apply for the purposes of this subsection.
Repeal the subsections, substitute:
(3) If any of the amount (the
deducted amount ) which a small remitter must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the small remitter is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the deducted 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 deducted amount;
(ii) general interest charge on any of the deducted amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1) A small remitter that must pay an amount to the Commissioner under section 220AAR must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2) If the small remitter fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the small remitter is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the small remitter, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(3) The notification must be in a form approved in writing by the Commissioner, unless:
(a) it is by way of a statement under section 220AAT accompanying a payment; and
(b) the Commissioner requires statements under that section to be in a particular form, contain particular information or be given in a particular manner; and
(c) the statement meets those requirements.
Repeal the section.
Repeal the section, substitute:
(1) A large remitter that pays an amount other than by electronic transfer is liable to pay the general interest charge on the amount for each day in the period that:
(a) started at the beginning of the day by which the payment was due to be paid; and
(b) finishes at the end of the 6th day after that day.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) However, if the amount of the general interest charge is less than $500, the large remitter is instead liable to pay a penalty of $500.
(3) The Commissioner may remit all or a part of the penalty that a large remitter is liable to pay because of subsection (2).
Note: The Commissioner may remit an amount of the general interest charge under section 8AAG of the
Taxation Administration Act 1953. (4) This section does not apply to an exempt Australian government agency (within the meaning of subsection 995‑1(1) of the
Income Tax Assessment Act 1997 ).
Repeal the sections.
Repeal the subsections.
Add:
(5) If the payer fails to give the Commissioner the report by the time by which it must be given to the Commissioner, the payer is liable to pay the late reconciliation statement penalty.
Note: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the section, substitute:
220AS
Failure to make deduction from reportable payment (1) If a person, other than a government body, making a reportable payment to a payee does not deduct from the payment the amount required to be deducted under this Division, the person is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.
(2) The person must pay the penalty amount by the time by which, if the person had deducted the amount required to be deducted, the person would have been required to pay that amount to the Commissioner.
(3) 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 .
Add:
Government bodies
(4) If a government body making a reportable payment to a payee does not deduct from the payment the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:
(a) started at the beginning of the day on which the payment was made; and
(b) finishes at the end of 30 June in the financial year in which the payment is made.
Note: The general interest charge does not apply to the Commonwealth or authorities of the Commonwealth: see subsection 8AAB(3) of the
Taxation Administration Act 1953 .
Repeal the section, substitute:
220AU
Commissioner may remit penalty for failure to deduct (1) The Commissioner may remit all or a part of the penalty a person is liable to pay under subsection 220AS(1).
(2) The Commissioner must give written notice to the person if the Commissioner decides:
(a) to remit a part only of the penalty; or
(b) not to remit any part of the penalty.
Repeal the section.
Repeal the subsection.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsections.
Omit “subsection (2), (3), (4) or (5)”, substitute “section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the subsections.
Add:
Note: An instalment taxpayer who fails to pay on time some or all of an instalment is liable to pay the general interest charge on the unpaid amount: see section 221AZMAA.
Repeal the subsection, substitute:
(5) Instalments are to be treated as tax for the purposes of sections 206, 208, 209, 214, 254, 255, 258 and 259.
Repeal the section, substitute:
A taxpayer who pays an instalment is entitled to a credit equal to the amount of the instalment.
130
At the end of Subdivision B of Division 1C of Part VI Add:
(1) An instalment taxpayer who fails to pay some or all of an instalment, by the time by which the instalment is due to be paid under section 221AZK, is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the instalment 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 instalment;
(ii) general interest charge on any of the instalment.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) For the purpose of working out any unpaid amount of a final instalment:
(a) despite section 221AZT, the final instalment is taken to be due to be paid on the day specified in section 221AZK; and
(b) the final instalment is first reduced by any credits or offsets specified in paragraph 221AZP(1)(b).
Omit “is liable to pay a penalty under this section in respect of an estimate lodged by the taxpayer for the current year”, substitute “who lodges an estimate for the current year is liable to pay the general interest charge on the amount in subsection (2)”.
Note: The heading to section 221AZP is altered by omitting “
Penalty applies ” and substituting “Liability ”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “The penalty applies to”, substitute “The taxpayer is liable to pay the general interest charge on the amount that is”.
Omit “The penalty is calculated at the rate of 16% per year for”, substitute “The general interest charge is payable for each day in”.
Omit “starts on the”, substitute “started at the beginning of the”.
Omit “ends on the”, substitute “finishes at the end of the”.
Repeal the subsection.
Omit “Penalty”, substitute “The amount of the general interest charge payable”.
Omit “208, 209, 214,”.
Repeal the section, substitute:
221EAA
Failure to make deductions from salary or wages (1) If an employer, other than a government body, paying salary or wages to an employee does not deduct from the salary or wages the amount required to be deducted under this Division, the employer is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.
(2) The employer must pay the penalty amount by the time by which, if the employer had deducted the amount required to be deducted, the employer would have been required to pay that amount to the Commissioner.
(3) If any of the penalty amount remains unpaid after the time by which it is due to be paid, the employer 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 .
Add:
Government bodies
(4) If a government body paying salary or wages to an employee does not deduct from the salary or wages the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:
(a) started at the beginning of the day by which the government body was required to deduct the amount; and
(b) finishes at the end of 30 June in the financial year in which that day occurred.
Note: The general interest charge does not apply to the Commonwealth or authorities of the Commonwealth: see subsection 8AAB(3) of the
Taxation Administration Act 1953 .
Insert:
(6) An employer who fails to give the Commissioner a statement under paragraph (5J)(b), on or before the day on which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.
Note 1: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection (15) provides an alternative liability for failing to give the statement to the Commissioner.
Add:
Note: Subsection (6) provides an alternative liability for contravening paragraph (5J)(b).
Repeal the subsection, substitute:
(2) If:
(a) an employer has made any deductions in respect of an employee under this Division during a year of income; and
(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the employee in relation to the year of income;
the employee is entitled to a credit equal to the sum of the deductions.
Repeal the subsection, substitute:
(3) If:
(a) a person has purchased one or more tax vouchers during a year of income; and
(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the purchaser in relation to the year of income;
the purchaser is entitled to a credit equal to the sum of the amounts of the purchases.
Repeal the subsections.
Repeal the subsection.
Repeal the section, substitute:
(1) The Commissioner may remit all or a part of the penalty a person is liable to pay under subsection 221EAA(1).
(2) The Commissioner must give written notice to the person if the Commissioner decides:
(a) to remit a part only of the penalty; or
(b) not to remit any part of the penalty.
Repeal the section.
Repeal the subsection.
Insert:
GIC period , in relation to an instalment of provisional tax for a year of income (thecurrent instalment ), means:
(a) if the current instalment is not the last instalment of provisional tax for the year of income—the period starting at the beginning of the due date for payment of the current instalment and finishing at the end of the due date for payment of the next instalment of provisional tax for the year of income; or
(b) if the current instalment is the last instalment of provisional tax for the year of income—the period starting at the beginning of the due date for payment of the current instalment and finishing at the end of the due date for payment of the tax payable in respect of the taxable income of the year of income.
152
Subsection 221YA(1) (definition of penalty period) Repeal the definition.
Omit “207, 207A,”.
154 Paragraph 221YAB(1)(a) (definition of Credited amounts) Repeal the definition, substitute:
Credited amounts means the sum of the following amounts:
(i) amounts applied under section 27CA in respect of payments made to the taxpayer during the preceding year of income;
(ii) amounts applied, in respect of credits under section 159GDA, in payment of the tax payable by the taxpayer in respect of income of the preceding year of income;
(iii) amounts applied, in respect of credits under Division 18, 18A or 18B of Part III or under the
Income Tax (International Agreements) Act 1953 , being credits in relation to income derived by the taxpayer during the preceding year of income;(iv) amounts applied, in respect of credits under section 221H, being credits in relation to deductions from the salary or wages paid to the taxpayer during the preceding year of income;
(v) amounts applied, in respect of credits under section 220AZ, 220AZA, 220AZB, 221YHF or 221YHZK, being credits in relation to deductions from payments made to the taxpayer during the preceding year of income.
155
Subsection 221YAB(1) (definition of PAYE deductions) Repeal the definition, substitute:
PAYE deductions means the sum of amounts applied, in respect of credits under section 221H, in respect of deductions from the salary or wages paid to the taxpayer during the preceding year of income.
Omit “sections 207 and 207A apply”, substitute “the general interest charge under section 221YD applies”.
Repeal the paragraph, substitute:
(h) if the taxpayer has paid an amount in respect of the superseded instalment, the taxpayer is entitled to a credit equal to the amount so paid.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the paragraph, substitute:
(e) where an amount of an instalment is reduced and the taxpayer has paid an amount in respect of the instalment, the taxpayer is entitled to a credit equal to the amount overpaid.
Repeal the subparagraph, substitute:
(ii) where an amount of an instalment is reduced and the taxpayer has paid an amount in respect of the instalment, the taxpayer is entitled to a credit equal to the amount overpaid;
Add:
(3) If any of the provisional tax, or the instalment of provisional tax, which a taxpayer is liable to pay remains unpaid after the time by which it is due to be paid, the taxpayer is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the provisional tax or the instalment 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 provisional tax or the instalment;
(ii) general interest charge on any of the provisional tax or the instalment.
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit “sections 207, 207A and”, substitute “section”.
Omit “sections 207 and 207A”, substitute “the general interest charge under section 221YD”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “to the Commissioner additional tax, by way of penalty, equal to 20% of”, substitute “, for each day in the period in subsection (1AAB), the general interest charge on”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “to the Commissioner additional tax, by way of penalty, equal to 20% of”, substitute “, for each day in the period in subsection (1AAB), the general interest charge on”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1AAB) A taxpayer that is liable to pay the general interest charge under subsection (1) or (1AAA) is liable to pay the charge for each day in the period that:
(a) started at the beginning of the day by which the provisional tax payable in respect of the estimated taxable income was due to be paid; and
(b) finishes at the end of the day by which the tax payable in respect of the taxable income is due to be paid.
Omit “additional tax, by way of penalty, in respect of the penalty period, is due and payable by the taxpayer to the Commissioner at the rate of 16% per annum”, substitute “the taxpayer is liable to pay, for each day in the GIC period, the general interest charge”.
Note: The heading to section 221YDB is altered by omitting “
Additional tax ” and substituting “Liability ”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “additional tax, by way of penalty, in respect of the penalty period, is due and payable by the taxpayer to the Commissioner at the rate of 16% per annum”, substitute “the taxpayer is liable to pay, for each day in the GIC period, the general interest charge”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsection.
Repeal the subsections, substitute:
(2) The amount of the general interest charge payable under subsection (1), (1AAA), (1AA) or (1ABA) is taken to be
additional tax payable under this section.
Repeal the section, substitute:
If a taxpayer has paid provisional tax, or an instalment of provisional tax, in respect of income of any year of income, and:
(a) an assessment of income tax in respect of that income has been made; or
(b) the Commissioner is satisfied that no income tax will be payable in respect of that income;
the taxpayer is entitled to a credit equal to the amount of that provisional tax or that instalment of provisional tax.
Repeal the paragraph, substitute:
(b) if the amount of provisional tax payable is reduced, the taxpayer is entitled to a credit equal to the amount of any provisional tax overpaid.
Omit “sections 207 and 207A”, substitute “the general interest charge under sections 221YD and 221YDB”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
Late reconciliation statement penalty
(9A) An eligible paying authority that fails to give the Commissioner a reconciliation statement form under subparagraph (5)(b)(iii) or (6)(d)(iii), on or before the day on which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.
Note 1: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection (10) provides an alternative liability for failing to give the form to the Commissioner.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsections.
Omit “Where, under subsection (2), (3), (4) or (4A)”, substitute “If, under section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the subsections.
Repeal the section, substitute:
221YHH
Failure to make deductions from prescribed payments (1) If an eligible paying authority, other than a government body, which makes a prescribed payment to a payee does not deduct from the payment the amount required to be deducted under this Division, the eligible paying authority is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.
(2) The eligible paying authority must pay the penalty amount by the time by which the eligible paying authority, if it had deducted the amount required to be deducted, would have been required to pay that amount to the Commissioner.
(3) If any of the penalty amount remains unpaid after the time by which it is due to be paid, the eligible paying authority 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 .
Add:
Government bodies
(4) If a government body that is an eligible paying authority makes a prescribed payment to a payee and does not deduct from the payment the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:
(a) started at the beginning of the day by which, if the government body had deducted the amount, the government body would have been required to pay that amount to the Commissioner; and
(b) finishes at the end of 30 June in the financial year in which that day occurred.
Note: The general interest charge does not apply to the Commonwealth or authorities of the Commonwealth: see subsection 8AAB(3) of the
Taxation Administration Act 1953 .
Repeal the subsection.
Omit “paragraph 221YHH(1)(a) or subsection 221YHH(2)”, substitute “subsection 221YHH(1)”.
Repeal the section.
Repeal the subsection.
Add:
Note: For an alternative sanction for failing to deduct the amount required to be deducted, see subsection (3).
Add:
Note 1: For an alternative sanction for failing to deduct the amount required to be deducted, see subsection (3).
Add:
Note 2: Subsection (1AAA) provides an alternative liability for failing to give the statement under paragraph (f) to the Commissioner.
Insert:
(1AAA) If the investment body in relation to a Part VA investment fails to give the Commissioner a statement under paragraph (1A)(f) by the time by which it must be given to the Commissioner, the investment body is liable to pay the late reconciliation statement penalty.
Note: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsections, substitute:
(3) If a person, other than a government body, making a payment to a non‑resident or an investor does not deduct from the payment the amount required to be deducted under subsection (1) or (1A), the person is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.
(4) The person must pay the penalty amount by the time by which, if the person had deducted the amount required to be deducted, the person would have been required to pay that amount to the Commissioner.
(5) 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 .
Add:
Government bodies
(6) If a government body making a payment to a non‑resident or an investor does not deduct from the payment the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:
(a) started at the beginning of the day by which, if the government body had deducted the amount, the government body would have been required to pay that amount to the Commissioner; and
(b) finishes at the end of 30 June in the financial year in which that day occurred.
Note: The general interest charge does not apply to the Commonwealth or authorities of the Commonwealth: see subsection 8AAB(3) of the
Taxation Administration Act 1953 .
Insert:
221YHZCA
Duty to notify Commissioner of amount deducted (1) A person, or an investment body in relation to a Part VA investment, that must pay an amount to the Commissioner under subsection 221YHZD(1) or (1A) must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2) If the person or investment body fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the person or investment body is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the person or investment body, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(3) The notification must be in a form approved in writing by the Commissioner.
Omit all the words from and including “shall”, to and including “payment to the non‑resident”, substitute “must notify the Commissioner in writing of the date on which the amount was deducted within 14 days after the end of the month in which the person makes the payment to the non‑resident”.
Add:
Note: The person must also notify the Commissioner of the amount on or before the day on which the person must pay it: see section 221YHZCA.
Repeal the penalty.
Repeal the subsection, substitute:
(2) If any of the amount which a person is liable to pay under subsection (1), (1A) or (1B) 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 amount for each day in the period that:
(a) started at the beginning of the day by which the 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 amount;
(ii) general interest charge on any of the amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsection.
Omit “paragraph 221YHZC(3)(a), subsection 221YHZC(4) or sub‑subparagraph 221YHZD(2)(b)(ii)(A)”, substitute “subsection 221YHZC(3)”.
Repeal the section.
Repeal the subsections.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsections.
Omit “Where, under subsection (2), (3), (4) or (5)”, substitute “If, under section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the subsection.
Repeal the section.
Insert:
(2) A person who must pay an amount to the Commissioner under paragraph (1)(a) must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2A) If the person fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the person is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the person, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(2B) The notification must be in a form approved in writing by the Commissioner.
Repeal the subsection.
Insert:
(2C) A person who fails to give the Commissioner a statement under paragraph (1)(b), by the time by which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.
Note 1: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection (3) provides an alternative liability for failing to give the statement to the Commissioner.
Repeal the subsections, substitute:
(4) If any of the amount which a person is liable to pay under paragraph (1)(a) 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 amount for each day in the period that:
(a) started at the beginning of the day by which the 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 amount;
(ii) general interest charge on any of the amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “additional tax”, substitute “general interest charge”.
Omit “the additional tax or any part of the additional tax to which the amount relates is remitted by the Commissioner under subsection 128C(4)”, substitute “some or all of the general interest charge is remitted by the Commissioner”.
Omit “additional tax” (wherever occurring), substitute “amount of the general interest charge”.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsection.
Omit “Where, under subsection (2)”, substitute “If, under section 8AAZL of the
Taxation Administration Act 1953 ”.
Add:
Note: For an alternative sanction for contravening subsection (1), see subsection 221ZD(1).
Insert:
(2) A person who must pay an amount to the Commissioner under paragraph (1)(a) must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2A) If the person fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the person is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the person, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(2B) The notification must be in a form approved in writing by the Commissioner.
Repeal the subsection.
Insert:
(2C) A person who fails to give the Commissioner a statement under paragraph (1)(b), by the time by which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.
Note 1: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection (3) provides an alternative liability for failing to give the statement to the Commissioner.
Repeal the subsections, substitute:
(4) If any of the amount which a person is liable to pay under paragraph (1)(a) 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 amount for each day in the period that:
(a) started at the beginning of the day by which the 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 amount;
(ii) general interest charge on any of the amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the subsection, substitute:
(1) 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.
(1A) The person must pay the penalty amount within 21 days after the end of the month in which the mining payment was made.
(1B) 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 .
Omit “paragraph (1)(a)” (wherever occurring), substitute “subsection (1)”.
Repeal the section.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsection.
Omit “Where, under subsection (2)”, substitute “If, under section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the paragraph.
Add:
Note: The person must also notify the Commissioner of the amount on or before the day on which the person must pay it: see section 221ZNA.
Repeal the subsection, substitute:
(5) A person must not refuse or fail to comply with paragraph (1)(a), (b) or (e).
Penalty: 10 penalty units.
Note: For an alternative sanction for failing to deduct the amount required to be deducted, see subsection 221ZO(1).
Insert:
(1) A person who must pay an amount to the Commissioner under paragraph 221ZN(1)(c) must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid).
(2) If the person fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the person is liable to pay the failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the person, or otherwise becomes aware, of the correct amount.
Note: The failure to notify penalty is worked out under Division 2 of Part IIA of the
Taxation Administration Act 1953 .(3) The notification must be in a form approved in writing by the Commissioner.
Omit all the words after “Division from an amount”, substitute “withdrawn from a film account, the person is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount that the person failed or refused to deduct.”.
Insert:
(1A) The person must pay the penalty amount within 21 days after the amount was withdrawn from the film account.
Repeal the subsection, substitute:
(3) If any of the penalty amount which a person is liable to pay under subsection (1) 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 .
Omit “paragraph (1)(a)”, substitute “subsection (1)”.
Repeal the section, substitute:
If any of the amount which a person is liable to pay under paragraph 221ZN(1)(c) 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 amount for each day in the period that:
(a) started at the beginning of the day by which the 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 amount;
(ii) general interest charge on any of the amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the sections.
Omit “paragraph 221ZO(1)(a)” (wherever occurring), substitute “subsection 221ZO(1)”.
Omit “Subject to this section, the”, substitute “The”.
Repeal the subsections.
Repeal the subsection, substitute:
(2) If any of the amount which the financial institution must pay to the Commissioner remains unpaid after the time by which it is due to be paid, the financial institution is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the 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 amount;
(ii) general interest charge on any of the amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Add:
(4) A financial institution that fails to give the Commissioner the report, by the time by which it must be given to the Commissioner, is liable to pay the late reconciliation statement penalty.
Note: The late reconciliation statement penalty is worked out under Division 3 of Part IIA of the
Taxation Administration Act 1953 .
Omit “the Commissioner a penalty of 20% per annum of”, substitute “general interest charge, for each day in the period in subsection (2), on”.
Omit “amount;”, substitute “amount.”.
Omit all the words after paragraph (c).
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Add:
(2) The depositor is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day on which the repayment was made; and
(b) finishes at the end of the day before the making of the owner’s assessment for the year of income in which the repayment is made.
Repeal the sections.
Repeal the Division.
254
Subdivision E of Division 8 of Part VI (heading) Repeal the heading, substitute:
Repeal the subsections, substitute:
(3) The person is also liable to pay the general interest charge on the unpaid amount of the estimate for each day in the period that:
(a) started at the beginning of the day by which the estimate 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 estimate;
(ii) general interest charge on any of the estimate.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note: The heading to section 222AJA is altered by omitting “
penalty ” and substituting “the general interest charge ”.
Omit “a penalty payable under a provision of”, substitute “pay the general interest charge under”.
Note: The heading to section 222AJB is altered by omitting “
paying penalty ” and substituting “paying the general interest charge ”.
Omit “penalty”, substitute “general interest charge”.
Repeal the paragraphs, substitute:
(d) a liability of the person to pay interest carried by a judgment debt, to the extent that the judgment debt is based on the liability to pay the estimate or on the liability to pay the general interest charge under subsection 222AJA(3) on an unpaid amount of the estimate.
Repeal the section.
Repeal the subsection.
Add:
Note: Section 204 sets out when the additional tax is payable and the consequences of not paying it on time.
Omit “any additional tax or any interest under section 170AA or 207A”, substitute “the general interest charge under a provision of this Act”.
Omit “penalty, additional tax or interest”, substitute “penalty, additional tax or general interest charge”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
Omit all the words after “includes”, substitute “the general interest charge under a provision of this Act and additional tax under Part VII.”.
Add:
Note 1: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: Subsection 8AAB(4) of that Act lists the provisions that apply the charge.
275
Subsection 555(2) (definition of basic statutory interest rate) Omit “, less 4 percentage points,”.
276
Subsection 592(2) (definition of basic statutory interest rate) Omit “, less 4 percentage points,”.
Insert:
Remission of general interest charge
(2A) If:
(a) you have incurred expenditure that consists of general interest charge under Division 1 of Part IIA of the
Taxation Administration Act 1953 ; and(b) the Commissioner remits any of that charge;
then you are taken to receive the remitted amount as
recoupment of that expenditure.
Repeal the paragraph, substitute:
(c) the general interest charge under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Repeal the Division.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Omit “interest to the Commissioner, calculated in accordance with”, substitute “the general interest charge for each day in the period in”.
Note: The heading to section 65 is altered by omitting “
interest ” and substituting “the general interest charge ”.
Add:
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “interest” (wherever occurring), substitute “general interest charge”.
Omit “interest” (wherever occurring), substitute “general interest charge”.
Omit “to the Commissioner, calculated in accordance with”, substitute “for each day in the period in”.
Omit “Interest”, substitute “The general interest charge”.
Omit “shall be calculated”, substitute “is payable for each day in the period that”.
Omit “in respect of the period commencing on”, substitute “started at the beginning of”.
Omit “amendment,”, substitute “amendment; and”.
Omit all the words after subparagraph (ii).
Repeal the paragraph, substitute:
(b) finishes at the end of the day before the current amended assessment is made.
Repeal the subsections.
Omit “interest” (wherever occurring), substitute “the general interest charge”.
Add:
(14) The amount of the general interest charge that a person is liable to pay is called
interest payable under this section.
Repeal the section, substitute:
(1) If any of the tax which a person is liable to pay remains unpaid after the time by which the tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) The person is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day by which the tax 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 tax;
(ii) general interest charge on any of the tax.
(3) The amount of the general interest charge is taken to be
additional tax payable under this section.(4) In this section:
tax includes additional tax under Part IX.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
298
Section 5 (definition of late‑payment penalty) Repeal the definition, substitute:
late‑payment penalty means the general interest charge under section 68.
Repeal the section.
Omit “section 55”, substitute “section 8AAZL of the
Taxation Administration Act 1953 ”.
Repeal the section, substitute:
(1) If any of the tax which a person is liable to pay remains unpaid after the time by which the tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the tax 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 tax;
(ii) general interest charge on any of the tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) In this section:
tax includes penalty under Part 9.
Repeal the subsection.
Insert:
(2A) If the person fails to send to the Commissioner the form notifying the amounts, or notifies the Commissioner of one or more amounts that are less than the correct amount, the person is liable to pay the failure to notify penalty on the total of the amounts, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the person was required to send the form to the Commissioner; and
(b) finishes at the end of the day before the Commissioner receives from the person the form notifying the correct amounts, or the Commissioner otherwise becomes aware of the correct amounts.
Repeal the section, substitute:
(1) If a person, other than a government body, making a payment does not deduct from the payment the amount required to be deducted under this Division, the person is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.
(2) The person must pay the penalty amount by the time by which, if the person had deducted the amount required to be deducted, the person would have been required to pay that amount to the Commissioner.
(3) 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 .
Add:
Government bodies
(4) If a government body making a payment does not deduct from the payment the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:
(a) started at the beginning of the day by which, if the government body had deducted the amount, the government body would have been required to pay the amount to the Commissioner; and
(b) finishes at the end of 30 June in the financial year in which that day occurred.
Note: If a credit is applied against a tax debt, it might also be allocated to an RBA under section 8AAZE.
(3) If the credit is a special priority credit, then it must be applied:
(a) firstly against any HEC assessment debt of the tax debtor; and
(b) then against any FS assessment debt of the tax debtor;
before it is applied against other non‑RBA tax debts of the tax debtor.
(4) In applying this section, the Commissioner is not required to take account of any instructions of any person in respect of the payment or credit.
Division 4—Miscellaneous provisions about tax debts
For the purposes of taxation laws, a payment in respect of a tax debt is taken not to have been made until it is received by:
(a) the Commissioner; or
(b) a person acting on behalf of the Commissioner.
8AAZN
Overpayments made by the Commissioner under taxation laws (1) An administrative overpayment (the
overpaid amount ):
(a) is a debt due to the Commonwealth by the person to whom the overpayment was made (the
recipient ); and(b) is payable to the Commissioner; and
(c) may be recovered in a court of competent jurisdiction by the Commissioner, or by a Deputy Commissioner, suing in his or her official name.
(2) If:
(a) the Commissioner has given a notice to the recipient in respect of the overpaid amount, specifying a due date for payment that is at least 30 days after the notice is given; and
(b) any of the overpaid amount remains unpaid at the end of that due date;
then the recipient is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(c) started at the beginning of that due date; and
(d) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the overpaid amount;
(ii) general interest charge on any of the overpaid amount.
(3) In this section:
administrative overpayment means an amount that the Commissioner has paid to a person by mistake, being an amount to which the person is not entitled.
352
Subsection 16B(2) (definition of tax liability) After “liability”, insert “(other than a liability to pay the general interest charge)”.
Taxation (Interest on Overpayments and Early Payments) Act 1983
353
Subsection 3(1) (definition of income tax crediting amount) Repeal the definition, substitute:
income tax crediting amount , in relation to income tax payable by a person for a year of income, means:
(a) any of the following that is applied against the income tax under section 8AAZL of the
Taxation Administration Act 1953 :
(i) any amount of a credit under Division 18, 18A or 18B of Part III of the Tax Act or under the
Income Tax (International Agreements) Act 1953 , to the extent to which it is not applied to provide correlative relief in respect of the taxing of an amount under a law of a foreign country;(ii) any amount of a credit under Division 18, 18A or 18B of Part III of the Tax Act or under the
Income Tax (International Agreements) Act 1953 , to the extent to which it is applied to provide correlative relief in respect of the taxing of an amount under a law of a foreign country, provided that the following requirements are met:
(A) the law of the foreign country requires the payment of late payment interest in respect of the amount taxed;
(B) the late payment interest was paid by the time the applying of the amount took place;
(iii) any amount of a credit that does not arise under Division 18, 18A or 18B of Part III of the Tax Act or under the
Income Tax (International Agreements) Act 1953 ; or(b) any offset under section 160AQK of the Tax Act.
354
Subsection 3(1) (paragraph (a) of the definition of relevant tax) Repeal the paragraph, substitute:
(a) any of the following:
(i) tax as defined in subsection 6(1) of the Tax Act;
(ii) additional tax under Part VII of that Act;
(iii) general interest charge under section 170AA of that Act;
(iv) interest under section 102AAM of that Act;
(v) provisional and additional tax under section 221YDB of that Act;
(vi) instalments under section 221AZK of that Act;
(vii) amounts that are treated under subsection 106U(1) of the
Higher Education Funding Act 1988 as if they were income tax;(viii) amounts that are treated under subsection 12ZN(1) of the
Student and Youth Assistance Act 1973 as if they were income tax;
358
Subsection 3(1) (paragraph (bc) of the definition of relevant tax) Omit “paragraph 221YHZC(3)(a) or sub‑subparagraph 221YHZD(2)(b)(ii)(A)”, substitute “subsection 221YHZC(3) or 221YHZD(2)”.
359
Subsection 3(1) (paragraph (caa) of the definition of relevant tax) Omit “subparagraph 222AJA(3)(b)(i)”, substitute “subsection 222AJA(3)”.
360
Subsection 3(1) (paragraph (ha) of the definition of relevant tax) Omit “within the meaning of”, insert “, or additional tax, referred to in”.
Omit “section 163B or”.
Omit “, 163C or 170AA”.
Insert:
(vb) general interest charge under section 163B or 170AA of the Tax Act;
Omit “, less 4 percentage points” (wherever occurring).
Repeal the subsection.
Omit “, less 4 percentage points” (wherever occurring).
Repeal the paragraph, substitute:
(a) an amount of provisional tax paid by a person to the Commissioner in respect of income of a year of income (the
relevant year of income ) is applied or refunded in respect of a credit under subsection 221YCA(2) or (3) or section 221YE of the Tax Act;
Omit “, less 4 percentage points”.
Repeal the subparagraph, substitute:
(i) remits, under section 8AAG of the
Taxation Administration Act 1953 , the whole or part of an amount that has been paid to the Commissioner in respect of general interest charge payable under subsection 221AZP(1) and section 221YDB; or
Repeal the subparagraph, substitute:
(iii) applies or refunds the whole or part of an amount, in respect of a credit under subsection 221YBA(6), 221YCA(2) or 221YG(2) of the Tax Act; or
Omit “, less 4 percentage points”.
Repeal the Act.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Repeal the section.
Repeal the section, substitute:
(1) If any of the recoupment tax which a person is liable to pay 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 amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) The person is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day by which the recoupment tax 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 recoupment tax;
(ii) general interest charge on any of the recoupment tax.
(3) The amount of the general interest charge is taken to be
additional tax payable under this section.(4) In this section:
recoupment tax includes additional tax under Part VII of the Assessment Act as that Part applies for the purposes of this Act.
Termination Payments Tax (Assessment and Collection) Act 1997
Omit “interest is payable on the additional surcharge”, substitute “the general interest charge is payable on the additional surcharge”.
Omit:
• The Commissioner may remit interest or late payment penalty: a refusal to remit is reviewable by the Administrative Appeals Tribunal.
Repeal the section, substitute:
13
Payment of general interest charge if liability increased by amended assessment
Liability to pay general interest charge
(1) If an amendment of an assessment increasing a taxpayer’s liability to pay surcharge for a financial year is made, the taxpayer is liable to pay the general interest charge on the amount of the increase for each day in the period that:
(a) started at the beginning of 15 June in the financial year; and
(b) finishes at the end of the day before the amended assessment is made.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Amendment of nil assessment
(2) If:
(a) the Commissioner has calculated that no surcharge is payable by a taxpayer for a financial year; and
(b) the Commissioner afterwards makes an assessment of surcharge payable by the taxpayer for the financial year;
that assessment is taken to be an amended assessment.
Repeal the heading, substitute:
Part 4—Recovery of unpaid surcharge, general interest charge or late payment penalty
Repeal the subsections, substitute:
Liability to pay general interest charge
(1) If an amount of surcharge payable by a taxpayer remains unpaid after the time by which it is due to be paid, the taxpayer is liable to pay the general interest charge on the unpaid amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
General interest charge period
(2) The taxpayer is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day by which the surcharge 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 surcharge;
(ii) general interest charge on any of the surcharge.
Omit “interest”, substitute “general interest charge”.
Repeal the subsection.
Insert:
16A
Additional liability to pay general interest charge
Commissioner may give notice
(1) If general interest charge (the
primary general interest charge ) is payable by a person under section 13, the Commissioner may give a notice to the person specifying a date after which general interest charge will apply under this section. The specified date must be at least 30 days after the notice is given.
Liability to general interest charge
(2) If any of the primary general interest charge remains unpaid after the day specified in the notice, the person is liable to pay general interest charge on the unpaid amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
General interest charge period
(3) The person is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day specified in the notice; 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) primary general interest charge;
(ii) general interest charge on primary general interest charge.
Omit “interest”, substitute “general interest charge”.
Omit “interest”, substitute “general interest charge”.
Note: The heading to section 18 is altered by omitting “
interest ” and substituting “general interest charge ”.
Repeal the section.
Repeal the section.
Omit “interest”, substitute “general interest charge under section 13”.
389
Subsection 28A(10) (paragraphs (b) and (d) of the definition of surcharge debt) Omit “interest” (wherever occurring), substitute “general interest charge under section 13”.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Repeal the definition.
392
Section 31 (definition of late payment penalty) Repeal the definition, substitute:
late payment penalty means general interest charge payable under section 16 or 16A.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Repeal the section, substitute:
(1) If any of a charge which a person is liable to pay remains unpaid after the time by which the charge is due to be paid, the person is liable to pay the general interest charge (
GIC ) on the unpaid amount.Note 1: The GIC is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .Note 2: If a broker is also liable under section 12 to pay the charge, the person is only liable to pay the GIC in certain circumstances: see subsection (3).
(2) The person is liable to pay the GIC for each day in the period that:
(a) started at the beginning of the day by which the charge 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 charge;
(ii) GIC on any of the charge.
(3) However, if a broker is required to pay the charge under section 12, a person liable under section 11 for the same charge is only liable to pay the GIC on the unpaid amount of the charge if the Commissioner gives the person a notice of assessment in respect of the charge.
(4) If a person has been given a notice under subsection (3), the person is liable to pay the GIC on the unpaid amount for each day in the period that:
(a) started at the beginning of the day specified in the notice as the day by which the charge 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 charge;
(ii) GIC on any of the charge.
(5) The amount of the GIC a person is liable to pay under this section is taken to be
additional charge payable under this section.(6) In this section:
charge includes additional charge under section 29.
Repeal the section.
Insert:
general interest charge means the charge worked out under Division 1 of Part IIA of theTaxation Administration Act 1953 .
Repeal the section, substitute:
(1) If any of the tax which a person is liable to pay remains unpaid after the time by which the tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) The person is liable to pay the general interest charge for each day in the period that:
(a) started at the beginning of the day by which the tax 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 tax;
(ii) general interest charge on any of the tax.
(3) The amount of the general interest charge is taken to be
additional tax payable under this section.(4) In this section:
tax includes additional tax under section 61.
(1) This item applies to amendments made by items 1 to 3, 11, 12, 14, 18 to 27, 29, 37 to 42, 69 to 75, 77 to 80, 88 to 101, 107, 111, 113, 118, 120, 121, 127, 128, 130, 140, 148, 149, 153, 156, 158, 161 to 169, 175, 178, 179, 185, 187 to 189, 191, 192, 195, 200 to 204, 212, 214 to 217, 221, 223, 225, 226 to 228, 234, 236 to 242, 245, 252, 254 to 278, 280, 281, 296 to 298, 301, 304, 306, 309, 310, 314, 315 to 320, 322 to 328, 331, 332 to 335, 337 to 341, 344, 345, 346, 348, 352, 355 to 360, 373, 375 to 377, 379 to 385, 387 to 394, 396 and 397.
(2) The amendments apply in relation to amounts that are due to be paid on or after 1 July 1999.
(1) This item applies to amendments made by items 6, 7, 8 to 10, 43 to 51, 53 to 68, 102, 103, 114, 115, 119, 131 to 139, 141, 151, 152, 170 to 174, 186, 196, 247 to 251, 282 to 295, 305, 311 to 313, 329, 330, 354, 361 to 363, 369 and 378.
(2) The amendments apply to the extent that the period for which the person is liable to pay the general interest charge occurs on or after 1 July 1999.
(1) This item applies to amendments made by items 13, 104, 108, 112, 197 to 199, 211, 222, 232, 233, 235, 303, 307, 308 and 347.
(2) The amendments apply in relation to notifications that must be given to the Commissioner on or after 1 July 1999.
(1) This item applies to amendments made by items 15, 117, 142, 143, 180, 193, 194, 213, 224, 246 and 349.
(2) The amendments apply in relation to reconciliation statements, reports or forms that must be given to the Commissioner on or after 1 July 1999.
(1) This item applies to amendments made by items 16, 17, 81 to 87, 275, 276, 364, 366, 368 and 371.
(2) The amendments apply in relation to calculating interest for 1 July 1999 or a later day.
(1) This item applies to amendments made by items 105, 106, 109 and 110.
(2) The amendments apply in relation to amounts deducted on or after 1 July 1999.
(1) This item applies to amendments made by items 4, 5, 28, 30, 31, 32, 33, 34, 35, 36, 52, 76, 116, 122, 123, 124, 125, 126, 129, 144, 145, 146, 147, 150, 155, 157, 159, 160, 176, 177, 181, 182, 183, 184, 190, 205, 206, 207, 208, 209, 210, 218, 219, 220, 229, 230, 231, 243, 244, 253, 279, 299, 300, 302, 321, 336, 342, 343, 365, 367, 370, 374, 386 and 395.
(2) The amendments apply in relation to credits and payments to which section 8AAZL of the
Taxation Administration Act 1953 applies.
405
Application of new Part IIB of the Taxation Administration Act (1) Part IIB of the
Taxation Administration Act 1953 , so far as that Part relates to the establishment, operation and effect of RBAs, applies as follows:
(a) tax debts owing at or after the commencing time may be allocated to an RBA after the commencing time, regardless of when the debts arose;
(b) in all other respects, the amendments apply from the commencing time.
(2) Section 8AAZL of the
Taxation Administration Act 1953 applies as follows:
(a) payments received by the Commissioner either before or after the commencing time (and not already applied before the commencing time) must be applied in accordance with that section after the commencing time;
(b) credits arising either before or after the commencing time (and not already applied before the commencing time) may be applied in accordance with that section after the commencing time.
(3) Section 8AAZM of the
Taxation Administration Act 1953 applies to payments received after the commencing time.(4) Section 8AAZN of the
Taxation Administration Act 1953 applies to overpayments made by the Commissioner after the commencing time.
(5) In this item:
commencing time means the beginning of 1 July 1999.
Schedule 2 — Measures to deal with abuse of foreign tax credits
Insert:
foreign tax credit means a credit within the meaning of Division 19 of Part III.
Add “or”.
Insert:
(bb) a foreign tax credit being allowable to the taxpayer where the whole or a part of that foreign tax credit would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out;
Add:
; and (f) in a case where paragraph (bb) applies—the amount of the whole of the foreign tax credit or of the part of the foreign tax credit, as the case may be, referred to in that paragraph.
Add:
; or (d) a foreign tax credit being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:
(i) the allowance of the foreign tax credit to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and
(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be.
Omit “or (c)(i)”, substitute “, (c)(i) or (d)(i)”.
Add “or”.
Insert:
(ca) the allowance of a foreign tax credit to a taxpayer;
Add:
; or (g) the foreign tax credit would not have been allowable.
Add “or”.
Insert:
(d) in the case of a tax benefit that is referable to a foreign tax credit, or a part of a foreign tax credit, being allowable to the taxpayer—determine that the whole or a part of the foreign tax credit, or the part of the foreign tax credit, as the case may be, is not to be allowable to the taxpayer;
Add “or”.
Insert:
(d) if, in the opinion of the Commissioner:
(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a foreign tax credit if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a foreign tax credit to the relevant taxpayer; and
(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a foreign tax credit to the relevant taxpayer;
determine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a foreign tax credit to the relevant taxpayer;
Insert:
177H
Amendment of foreign tax credit determinations (1) Section 160AK does not prevent the amendment of a foreign tax credit determination at any time before the end of 6 years after the original determination date if the amendment is for the purposes of giving effect to subsection 177F(1).
(2) Section 160AK does not prevent the amendment of a foreign tax credit determination at any time if the amendment is for the purpose of giving effect to subsection 177F(3).
(3) For the purposes of this section, a
foreign tax credit determination is a determination under Division 19 of Part III.(4) For the purposes of this section, the
original determination date for a foreign tax credit determination has the same meaning as in section 160AK.
15
Subsection 222A(1) (definition of scheme section) Omit “or 226”, substitute “, 226 or 226AA”.
16
Subsection 222A(1) (at the end of the definition of wrongful behaviour provision) Add:
; or (d) in relation to section 226AA, paragraph 226AA(1)(c) or (2)(c).
Insert:
226AA
Penalty tax where Part IVA applies—foreign tax credits (1) If:
(a) for the purpose of making a foreign tax credit determination, the Commissioner has calculated the amount of a foreign tax credit that is allowable to a taxpayer; and
(b) in calculating the amount of the foreign tax credit allowable to the taxpayer, one or more determinations made by the Commissioner under subsection 177F(1) were taken into account; and
(c) the amount of the foreign tax credit that would have been allowable if those subsection 177F(1) determinations had not been made exceeds the amount of the foreign tax credit referred to in paragraph (a);
the taxpayer is liable to pay, by way of penalty, additional tax equal to the penalty percentage of the excess.
(2) If:
(a) the Commissioner makes a foreign tax credit determination to the effect that a foreign tax credit is not allowable to a taxpayer; and
(b) in determining that the foreign tax credit is not allowable to the taxpayer, one or more determinations made by the Commissioner under subsection 177F(1) were taken into account; and
(c) a foreign tax credit would have been allowable to the taxpayer if those subsection 177F(1) determinations had not been made;
the taxpayer is liable to pay, by way of penalty, additional tax equal to the penalty percentage of the amount of the foreign tax credit referred to in paragraph (c).
(3) For the purposes of this Part, additional tax payable by a taxpayer under subsection (1) or (2) is in respect of a year of income if:
(a) the additional tax is payable by the taxpayer in relation to an amount of a foreign tax credit that would have been allowable to the taxpayer if the subsection 177F(1) determinations referred to in paragraph (1)(c) or (2)(c) had not been made; and
(b) the foreign tax credit relates to assessable income, or another amount, derived by the taxpayer during the year of income.
(4) In this section:
foreign tax credit means a credit within the meaning of Division 19 of Part III.
foreign tax credit determination means a determination under Division 19 of Part III.
penalty percentage means:
(a) subject to paragraph (b)—50%; or
(b) if it is reasonably arguable that Part IVA does not apply—25%.
Note: The heading to section 226 is altered by adding at the end “
—general ”.
After “scheme section”, insert “(other than section 226AA)”.
The amendments made by this Schedule apply in relation to schemes that were entered into after 4 pm, by legal time in the Australian Capital Territory, on 13 August 1998.
1
Section 160AH (paragraph (b) of the definition of credit) Repeal the paragraph, substitute:
(b) the
International Tax Agreements Act 1953 .
2
Subsection 222A(1) (paragraph (c) of the definition of wrongful behaviour provision) Omit “226(c)(i) or (ii)”, substitute “226(1)(c)(i) or (ii)”.
Omit “subsection (2)”, substitute “this section”.
Renumber as subsection (3).
Taxation Laws Amendment (Private Health Insurance Incentives) Act 1997
Omit “After section 264A”, substitute “Before section 265”.
Omit “264B”, substitute “264BA”.
Social Security Legislation Amendment (Parenting and Other Measures) Act 1997
Omit “after paragraph (aaa)”, substitute “before paragraph (b)”.
Omit “(aab)”, substitute “(aac)”.
0
0
0