Taxation Laws Amendment (Self Assessment) Act 1992 (101 of 1992)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

21   Payment of interest by taxpayer where assessment amended

Section 170AA of the Principal Act is amended:

(a) by inserting after subsection (1) the following subsection:

"(1AA) Subsection (1) applies even if the amendment of the assessment is made in relation to a matter because of which the taxpayer is liable under Part VII to pay additional tax by way of penalty.";

(b) by omitting subsection (2) and substituting the following subsection:

"(2) Subsection (1A) applies even if the amendment of the determination is made in relation to a matter because of which the taxpayer is liable under Part VII to pay additional tax by way of penalty.";

(c) by omitting from subparagraph (3)(b)(ii) "subsection 223(2)" and substituting "section 226N, 226P or 226Q";

(d) by omitting from subparagraph (3)(b)(iii) "subsection 223(4)" and substituting "section 226R, 226S or 226T";

(e) by inserting in subparagraph (4)(a)(i) "and the taxpayer is not a relevant entity within the meaning of Division 1B of Part VI" after "applies";

(f) by inserting after subparagraph (4)(a)(i) the following subparagraph:

"(ia) in a case to which subsection (1) or (1A) applies and the taxpayer is a relevant entity within the meaning of Division 1B of Part VI - the day on which the payment of tax by the taxpayer was, or, if paragraph 221AZD(b) had applied, would have been, required to be made under paragraph 221AZD(b) in respect of the relevant year of income; or";

(g) by omitting paragraph (4)(b) and substituting the following paragraph:

"(b) at such annual rate or rates of interest as are provided for by section 214A.";

(h) by omitting subsection (7) and substituting the following subsection:

"(7) For the purposes of subsection (6), if the taxpayer is a relevant entity within the meaning of Division 1B of Part VI and, on the basis of the entity's return, either:

(a) the taxable income of the entity of the year of income is nil; or

(b) no tax is payable on the taxable income of the entity of the year of income; then:

(c) the Commissioner is deemed for the purposes of paragraph 6(a) to have served notice in respect of the entity; and

(d) paragraph 6(c) applies as if all words after 'payable' were omitted and there were substituted 'on the day that would have applied under subparagraph 4(a)(ia) if the notional assessment had been an assessment and the assessment referred to in paragraph (b) had been an amendment of the notional assessment'.".