• Shortfall interest charge – for indeterminate rights acquired before 1 July 2009

    Where your amendment results in a tax shortfall amount, you may be liable to interest charges on the shortfall. However, remission of interest charges will be considered with your amendment request.

    Where you request an amendment to your income tax assessment to include income from indeterminate rights, shortfall interest will generally be remitted in full where you did so because of one of the following circumstances:

    • you made a section 139E election in the income year in which you acquired the indeterminate rights
    • your indeterminate rights are non-qualifying and the discount must be included in the acquisition year, or
    • you had a cessation time or deferred taxing point in an income year before the year in which your indeterminate rights became rights to acquire shares and the discount income is assessable in that earlier income year.

    Where we amend your income tax assessment to include income from indeterminate rights as a result of allowing a later election, we will generally remit the shortfall interest in full to the extent that it relates to the discount included for the indeterminate rights.

    In these circumstances, the Commissioner will remit the shortfall interest to the earlier of:

    • the time when the amended assessment is made, or
    • the due date for lodgment (or within such further time as the Commissioner allows) following the income year that the indeterminate rights became rights to shares.

    If we allow a later section 139E election in circumstances where you would have had a cessation time or deferred taxing point in an income year prior to your rights becoming rights to shares, we will generally remit the shortfall interest as follows. The shortfall interest will be remitted in full from the time that income tax was due to be paid on the assessment for the year in which the cessation time or deferred taxing point occurred until the earlier of:

    • the time when the amended assessment is made, or
    • the due date for lodgment (or within such further time as the Commissioner allows) following the income year that the indeterminate rights became rights to shares.
      Last modified: 17 Aug 2016QC 25098