TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules  

PART 4-25 - CHARGES AND PENALTIES  

Division 280 - Shortfall interest charge  

Subdivision 280-B - Shortfall interest charge  

SECTION 280-100   LIABILITY TO SHORTFALL INTEREST CHARGE - INCOME TAX  

280-100(1)  
You are liable to pay *shortfall interest charge on an additional amount of income tax that you are liable to pay because the Commissioner amends your assessment for an income year.

280-100(2)  
The liability is for each day in the period:


(a) beginning at the start of the day on which income tax under your first assessment for that income year was due to be paid, or would have been due to be paid if there had been any; and


(b) ending at the end of the day before the day on which the Commissioner gave you notice of the amended assessment.

280-100(3)  
However, if an amended assessment reinstates all or part of a liability in relation to a particular that had been reduced by an earlier amended assessment, the period for the reinstated liability begins at the start of the day on which income tax under the earlier amended assessment was due to be paid, or would have been due to be paid if there had been any.

Note:

See Division 5 of the Income Tax Assessment Act 1997 for when the amount of income tax and shortfall interest charge becomes due and payable. That Division also provides for general interest charge on any part of the additional amount (plus any shortfall interest charge) that remains unpaid after the additional amount is due and payable.

Liability to shortfall interest charge - excess concessional contributions charge

280-100(4)  


Despite subsection (1), if:


(a) you are liable under that subsection to pay *shortfall interest charge on an additional amount of income tax; and


(b) that additional amount includes an amount of income tax on which you are liable to pay an amount of *excess concessional contributions charge;

the additional amount of income tax on which you are liable to pay shortfall interest charge is taken to be increased by the amount of excess concessional contributions charge mentioned in paragraph (b).

Liability arising because of a financial benefit under a look-through earnout right

280-100(5)  


Subsection (1) does not apply if:


(a) you provide or receive a *financial benefit under a *look-through earnout right; and


(b) you request the Commissioner to amend your assessment for an income year (the taxing year ) to take account of the financial benefit; and


(c) you make that request at or before the time:


(i) you are required to lodge your *income tax return for the income year in which the financial benefit is provided or received; or

(ii) you would be so required if you were required to lodge an income tax return for that income year; and


(d) as a result of paragraph (a), you are liable to pay an additional amount of income tax for the taxing year.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.