Penalties and interest

Remission of SIC and GIC for shortfall periods

Remission can be requested by you or initiated by us. If you request a remission of interest, we will consider your request based on the information which is provided and other information available to us. We may remit some, all or none of the interest charge.

We will initiate remission if it is readily apparent it is appropriate to do so. Some facts that indicate it is readily apparent and appropriate are one of the following:

• we delay the start of an audit, or the expected time to complete an audit is exceeded by our actions
• there are periods of unreasonable delay caused by us during the course of an audit
• during an audit either of us experience a delay in obtaining information from a third party and this information is not otherwise available to you
• there is a delay in us processing your amendment request.

For a more detailed explanation of factors we consider, refer to Law Administration Practice Statement PS LA 2006/8 Remission of shortfall interest charge and general interest charge for shortfall periods.

If the interest charge is not remitted in full, we will give you a written explanation of the remission decision.

The letter explaining our decision will outline options available if you disagree with our decision. In certain circumstances, you have the right to object to the remission decision. In other circumstances, you may request a review of the decision.

You may object to a SIC remission decision if the amount of interest that remains payable is greater than 20% of the shortfall amount the interest relates to. In all other circumstances you may request a review of the remission decision.

For additional information about objections and reviews, refer to Guide to correcting mistakes and disputing our decisions.

Sections within Remission of interest charges

• Remission of GIC on late payment of debts
• Remission of SIC and GIC for shortfall periods