FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART VII - COLLECTION AND RECOVERY OF TAX  

Division 2 - Collection by instalments  

Subdivision C - Working out the amount of instalments  

SECTION 112B   LIABILITY TO GIC ON SHORTFALL IN QUARTERLY INSTALMENT WORKED OUT ON THE BASIS OF ESTIMATED TAX  

112B(1)   [When there is liability]  

An employer is liable to pay the general interest charge under this section if:


(a) in order to determine the amount of an instalment of tax (the underpaid instalment ) of the employer for a year of tax, an amount (whether positive, negative or nil) (the actual amount ) was worked out using the formula in subsection 111(1) ; and


(b) because of subsection 110(5) , the notional tax amount used in working out the actual amount was an estimate by the employer under subsection 112(1) ; and


(c) that notional tax amount is less than 90% of the employer ' s tax assessed for the year of tax; and


(d) that assessed tax has become due and payable.

Note:

Paragraph (1)(b) is not satisfied if the notional tax amount used in working out the actual amount was estimated tax worked out under subsection 112(3) because the Commissioner disagrees with the employer ' s estimate.

112B(2)   [Calculation]  

The employer is liable to pay the charge, for each day in the GIC period, on the amount (if any) by which the actual amount is less than the amount (whether positive, negative or nil) worked out using the formula:

Graphic

112B(3)   [Interpretation]  

For the purposes of the formula in subsection (2):

minimum tax amount
means the lesser of:


(a) the amount that, apart from subsection 110(5) , would have been the notional tax amount used in working out the actual amount; and


(b) the employer ' s tax assessed for the year of tax.

previous credits
means the total of any credits the employer has claimed under section 112A because of one or more instalments of tax for the same year of tax that became due and payable before that day.

previous instalments
means the total of any instalments of tax for the same year of tax that became due and payable by the employer before the day on which the underpaid instalment became due and payable (or would have become due and payable if the actual amount had been positive).

112B(4)   [Amount is additional tax]  

The amount of the general interest charge is taken to be additional tax payable under this section.




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