General interest charge

Can I ask for remission of GIC?

If a GIC amount is imposed, you can ask for it to be reduced in part or in full. The grounds for the remission of GIC for late payment are contained in Chapter 93 of the ATO Receivables Policy. This policy allows for extenuating circumstances to be considered. The steps taken to relieve the effects of those circumstances are also taken into account. Examples include:

• where circumstances that contributed to the delay in payment of the debt were not due to the taxpayer (these may include natural disasters, industrial action, the unforeseen collapse of a major debtor, the sudden ill health of key personnel)
• where circumstances that contributed to the delay in payment of the debt were due to the taxpayer (for example, where a soundly based decision has unforeseen consequences), or
• where there are special circumstances that make remission of the GIC fair and reasonable (for example, where the payment of the full amount of GIC would result in serious financial hardship for the taxpayer).

The Commissioner has also released Law Administration Practice Statement PS LA 2006/8 which deals with the remission of shortfall interest charges which may arise where a tax liability is amended or revised.

A request for the remission of GIC for late payment can be made over the phone or in writing, though generally for remission of larger amounts or in more complicated cases, the latter may be required.

In either case, you should fully outline the circumstances that led to the delay in payment and any steps taken to alleviate the delay.

If making your request in writing, you should send the request to:

Facsimile	All states	1300 139 045
Mail	NSW, QLD, ACT	PO Box 9102 PENRITH NSW 2740
	WA, SA, NT, VIC, TAS	PO Box 327 ALBURY NSW 2640

More information

General interest charge (GIC) rates ATO Receivables Policy - Chapter 93 General interest charge How to pay Difficulty in paying your tax (Individual clients) Difficulty in paying your tax debt (business clients) PS LA 2006/8 Remission of shortfall interest charge and general interest charge for shortfall periods Shortfall interest charge - fact sheet You can also phone For business and individuals: 13 11 42 For Tax Agents: 13 72 86 (Fast Key Code 1 3 2) Hearing or speech impaired clients can contact the Australian Communication Exchange (ACE) national relay service (NRS) on 13 36 77 and quote the Tax Office helpline phone number.