ATO Interpretative Decision
ATO ID 2001/655
Income Tax
Deductions - general interest chargeFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Can a taxpayer claim a deduction for general interest charge paid during the income year, under paragraph 25-5(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
Yes, a general interest charge paid during an income year is deductible under paragraph 25-5(1)(c) of the ITAA 1997.
Facts
The taxpayer's amended assessment for a previous year includes amounts in respect of a general interest charge.
The amended assessment is paid during the current tax year.
Reasons for Decision
The general interest charge imposed on late payments of taxes and penalties is specifically deductible under paragraph 25-5(1)(c) of the ITAA 1997.
Date of decision: 5 July 2001
Legislative References:
Income Tax Assessment Act 1997
paragraph 25-5(1)(c)
ATO ID 2002/380 ATO ID 2001/654
Keywords
Deductions
General interest charge
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 5 July 2001 | Original statement |
| 28 April 2003 | Archived |