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

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

24   After section 207

After section 207 of the Principal Act the following section is inserted:

Penalty interest on unpaid tax

"207A.(1) If any tax remains unpaid after it became due and payable or would, but for section 206, have become due and payable, the person liable to pay the tax is liable to pay, by way of penalty, interest to the Commissioner, at such annual rate or rates as are provided for by section 214A, on the amount unpaid, computed from the time or date from which additional tax on the amount is computed for the purposes of section 207.

"(2) For the purposes of this section, the tax specified under section 221AZD in a return is taken to be reduced by any credits or offsets, within the meaning of subsection 221AZE(6), in determining the amount of tax, if any, under paragraph 221AZD(b).

"(3) If subsection 160ARW(2) applies to an amount, interest under this section is computed as if that subsection did not apply.

"(4) The Commissioner may, in his or her discretion, remit the whole or any part of the interest payable by a taxpayer under this section.

"(5) Where judgment is given by, or entered in, a court for the payment of:

(a) an amount of tax; or

(b) an amount that includes an amount of tax; then:

(c) the tax must not be taken, for the purposes of subsection (1), to have ceased to be due and payable because only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the interest that would, but for this paragraph, be payable under this section in relation to the tax must, by force of this paragraph, be reduced by:

(i) in a case to which paragraph (a) applies - the amount of the judgment interest; or

(ii) in a case to which paragraph (b) applies - an amount that bears the same proportion to the amount of the judgment interest as the amount of the tax bears to the amount of the judgment debt.

"(6) Despite anything contained in this section the Commissioner may sue for recovery of any tax unpaid immediately after the expiry of the time when it becomes due and payable.

"(7) In this section, unless the contrary intention appears, 'tax' includes interest under section 170AA and additional tax under Part VII.".