Shortfall interest charge - fact sheet

How does the shortfall interest charge affect my income tax return?

Most people can claim a tax deduction for any SIC in the year that we give them the notice of assessment which includes the SIC amount.

If you are a business taxpayer and you have chosen to operate under the simplified tax system (STS) and use the cash accounting method, you can claim a tax deduction in the year that you pay the SIC.

If you are granted a remission of the SIC, you must include the remitted SIC amount as interest income in your tax return in the year that we granted you the remission.

If you make an amendment that reduces an earlier amendment, you must also include the amount of SIC that was reduced.