A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-7 - Special rules mainly about returns, payments and refunds  

Note:

The special rules in this Part mainly modify the operation of Part 2-7 , but they may affect other Parts of Chapter 2 in minor ways.

Division 162 - Payment of GST by instalments  

Subdivision 162-D - Penalty payable in certain cases if varied instalment amounts are too low  

162-175   GST payments are less than 85% of annual GST liability  

(1)  
You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if you have a * varied instalment amount for the GST instalment quarter, and:


(a) if the instalment tax period is a * financial year - the sum of your * GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your * annual GST liability for the instalment tax period; or


(b) if the instalment tax period is only part of a financial year - the sum of:


(i) your * GST instalments for all the GST instalment quarters of the instalment tax period; and

(ii) your * early net amounts for the financial year (subtracting any of those amounts that are less than zero);
is less than 85% of your annual GST liability for the instalment tax period.

(2)  
The amount of the penalty, for a particular day, is worked out by applying the * general interest charge :


(a) for each day in the period in section 162-190 ; and


(b) in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953 ;

to your * GST instalment shortfall , under this section, for the * GST instalment quarter .

(3)  
Your GST instalment shortfall , under this section, for the * GST instalment quarter is the amount worked out as follows:

Formula

where:

GST already payable
is the sum of:


(a) the * varied instalment amount ; and


(b) all your other * GST instalments (if any) for earlier * GST instalment quarters of the * instalment tax period in question; and


(c) if the instalment tax period is only part of a * financial year - your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).

(4)  
However, if:


(a) the * GST instalment quarter is not the first GST instalment quarter of the * instalment tax period in question; and


(b) you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;

then:


(c) your GST instalment shortfall , under this section, for the *GST instalment quarter is the difference between:


(i) the amount worked out using the formula in subsection (3); and

(ii) the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and


(d) if that sum is greater than the amount worked out using the formula in subsection (3) - you are not liable to pay a penalty under this section in relation to the GST instalment quarter.

(5)  
The appropriate percentage for a * GST instalment quarter is:


(a) if the GST instalment quarter ends on 30 September - 25%; or


(b) if the GST instalment quarter ends on 31 December - 50%; or


(c) if the GST instalment quarter ends on 31 March - 75%; or


(d) if the GST instalment quarter ends on 30 June - 100%.




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