TAXATION ADMINISTRATION ACT 1953 [ARCHIVE]

PART IIA - THE GENERAL INTEREST CHARGE  

Division 1 - The general interest charge  

SECTION 8AAB [Archive]   WHEN THE GENERAL INTEREST CHARGE APPLIES  

8AAB(4)  


Liability to the charge under the Income Tax Assessment Act 1936
Item Section Topic
10 220AAE payment of RPS, PAYE and PPS deductions (large remitters)
.
11 220AAM payment of RPS, PAYE and PPS deductions (medium remitters)
.
12 220AAR payment of RPS, PAYE and PPS deductions (small remitters)
.
13 220AAW non-electronic payment of RPS, PAYE and PPS deductions (large remitters)
.
14 220AS deductions from reportable payments (RPS)
.
15 221AZMAA payment of instalments by companies etc.
.
16 221AZP underestimation of instalments by companies etc.
.
17 221EAA deductions from salary or wages (PAYE)
.
18 221YD payment of provisional tax or instalments of provisional tax
.
19 221YDB provisional tax - income under-estimated or PAYE deductions over-estimated
.
20 221YHH deductions from prescribed payments (PPS)
.
21 221YHZC deductions from certain payments
.
22 221YHZD payment of certain payments
.
23 221YN payment of withholding tax
.
24 221ZC payment of mining withholding tax
.
25 221ZD deductions of mining withholding tax
.
26 221ZO deductions - Australian Film Industry Trust Fund accounts
.
27 221ZP payments - Australian Film Industry Trust Fund accounts
.
28 221ZXCpayments of farm management deposits
.
29 221ZXG understated farm management deposits

Division 2 - The failure to notify penalty  

SECTION 8AAHA [Archive]   8AAHA   DIVISION TO STOP APPLYING  
This Division does not apply to a notification of a liability that arises on or after 1 July 2000.

SECTION 8AAI [Archive]   OVERVIEW  

This Division explains how to work out the failure to notify penalty on an amount.

Generally, a person is liable to pay the penalty if the person must notify the Commissioner by a certain time of an amount that the person is liable to pay, and fails to do so.

A person is only liable to pay the penalty if a provision of an Act makes the person liable. (Most of the provisions are in the Income Tax Assessment Act 1936.)

SECTION 8AAJ [Archive]   WHEN THE FAILURE TO NOTIFY PENALTY APPLIES  

8AAJ(1)   [Liability]  

There are certain provisions of Acts that make persons liable to pay the failure to notify penalty. Subsections (4) and (5) list the provisions.

8AAJ(2)   [Liability must be specified]  

A person is only liable to pay the penalty on an amount if a provision specifies that the person is liable to pay the penalty on the amount.

8AAJ(3)   [Exempt Australian government agencies]  

The penalty does not apply to exempt Australian government agencies.

Note:

Exempt Australian government agency is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997.

8AAJ(4)   [Index of provisions]  

The following table is an index of the provisions in the Income Tax Assessment Act 1936 that deal with liability to the penalty.


Liability to the penalty under the Income Tax Assessment Act 1936
Item Section Topic
1 220AAGA payment of RPS, PAYE and PPS deductions (large remitter)
.
2 220AAOA payment of RPS, PAYE and PPS deductions (medium remitter)
.
3 220AATA payment of RPS, PAYE and PPS deductions (small remitter)
.
4 221YHZCA deductions from certain payments
.
5 221YN withholding tax
.
6 221ZC mining withholding tax
.
7 221ZNA Australian Film Industry Trust Fund accounts

8AAJ(5)   [Other Acts]  

The following table is an index of the provisions of Acts other than the Income Tax Assessment Act 1936 that deal with liability to the penalty.


Liability to the penalty under other Acts
Item Section Act
1 91Z Sales Tax Assessment Act 1992
.
2 95A Sales Tax Assessment Act 1992
.
3 16-150 in Schedule 1 Taxation Administration Act 1953
.
4 45-25 in Schedule 1 Taxation Administration Act 1953

SECTION 8AAK [Archive]   AMOUNT OF THE FAILURE TO NOTIFY PENALTY  

8AAK(1)   [Amount payable on days specified]  

The failure to notify penalty on an amount is payable by a person for each day in the period that is specified in the provision which makes the person liable to pay the penalty.

8AAK(2)   [8% rate]  

The penalty on an amount is worked out at the rate of 8% per annum of the amount.

SECTION 8AAL [Archive]   NOTIFICATION BY COMMISSIONER  

8AAL(1)   [Amount and day due and payable]  

The Commissioner must give written notice to the person of:


(a) the amount of the penalty; and


(b) the day on which that amount of the penalty is due and payable, which must be at least 30 days after the notice is given to the person.

8AAL(2)   [Specified day]  

The amount of the penalty is due and payable to the Commissioner on the day specified.

8AAL(3)   [Inclusion in other notices]  

The notice may be included in any other notice issued by the Commissioner in respect of the person.

8AAL(4)   [Evidence]  

A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Note:

For provisions about collection and recovery of the penalty, see Part 4-15 in Schedule 1.

SECTION 8AAM [Archive]   8AAM   REMISSION OF THE PENALTY  
The Commissioner may remit all or a part of the penalty payable by a person if the Commissioner is satisfied that:


(a) the circumstances that contributed to the failure to notify, or delay in notifying, the Commissioner were not due to, or caused directly or indirectly by, an act or omission of the person; and


(b) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances.

SECTION 8AAN [Archive]   8AAN   FAILURE TO PAY THE PENALTY  
If any of the amount of penalty that a person is liable to pay remains unpaid after the day by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:


(a) started at the beginning of the day by which the amount of the penalty was due to be paid; and


(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:


(i) the penalty;

(ii) general interest charge on any of the penalty.
Note:

The general interest charge is worked out under Division 1.

Division 3 - The late reconciliation statement penalty  

SECTION 8AANA [Archive]   8AANA   DIVISION TO STOP APPLYING  
This Division does not apply to a statement, report or form that relates to the 2000-01 year of income or a later year of income.

SECTION 8AAO [Archive]   OVERVIEW  

This Division explains how to work out the late reconciliation statement penalty on an amount.

Generally, a person is liable to pay the penalty if the person must give the Commissioner a reconciliation statement, report or form by a certain time, and fails to do so.

A person is only liable to pay the penalty if a provision of an Act makes the person liable. (All of the provisions are in the Income Tax Assessment Act 1936.)

SECTION 8AAP [Archive]   WHEN THE LATE RECONCILIATION STATEMENT PENALTY APPLIES  

8AAP(1)   [Provisions in ITAA36]  

There are certain provisions of the Income Tax Assessment Act 1936 that make persons liable to pay the late reconciliation statement penalty. Subsection (4) lists the provisions.

8AAP(2)   [Liability must be specified]  

A person is only liable to pay the penalty if a provision specifies that the person is liable to pay the penalty.

8AAP(3)   [Exempt Australian government entities]  

The penalty does not apply to exempt Australian government agencies.

Note:

Exempt Australian government agency is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997.

8AAP(4)   [Index of ITAA '36 provisions]  

The following table is an index of the provisions of the Income Tax Assessment Act 1936 that deal with liability to the penalty.


Liability to the penalty under the Income Tax Assessment Act 1936
Item Subsection Topic
1 220AJ(5) RPS payment report
.
2 221F(6) PAYE deductions reconciliation statement
.
3 221YHDC(9A) PPS payment reconciliation statement form
.
4 221YHZC(1AAA) statement of deductions from certain payments
.
5 221YN(2C) statement of withholding tax deductions
.
6 221ZC(2C) statement of mining withholding tax deductions
.
7 221ZXD(4) farm management deposits report

SECTION 8AAQ [Archive]   AMOUNT OF THE LATE RECONCILIATION STATEMENT PENALTY  

8AAQ(1)   [Penalty payable for each relevant week]  

The late reconciliation statement penalty is payable by a person for each week in the period that:


(a) starts on the day by which the statement, report or form referred to in the provision which makes the person liable to pay the penalty is due to be given to the Commissioner; and


(b) ends on the day before the Commissioner is given the statement, report or form.

8AAQ(2)   [$10 per week up to $200 maximum]  

The penalty is $10 for each week, or part of a week. However, the penalty for a particular statement, report or form cannot exceed $200.

SECTION 8AAR [Archive]   NOTIFICATION BY COMMISSIONER  

8AAR(1)   [Notice of amount and due day]  

The Commissioner must give written notice to the person of:


(a) the amount of the penalty; and


(b) the day on which that amount of the penalty is due and payable, which must be at least 30 days after the notice is given to the person.

8AAR(2)   [Specified due date]  

The amount of the penalty is due and payable to the Commissioner on the day specified.

8AAR(3)   [Inclusion in other notices]  

The notice may be included in any other notice issued by the Commissioner in respect of the person.

8AAR(4)   [Evidence]  

A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Note:

For provisions about collection and recovery of the penalty, see Part 4-15 in Schedule 1.

SECTION 8AAS [Archive]   REMISSION OF THE PENALTY  

8AAS(1)   [Remission where person not at fault]  

The Commissioner may remit all or a part of the penalty payable by a person if the Commissioner is satisfied that:


(a) the circumstances that contributed to the failure to give, or delay in giving, the Commissioner the statement, report or form referred to in the provision which makes the person liable to pay the penalty were not due to, or caused directly or indirectly by, an act or omission of the person; and


(b) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances.

8AAS(2)   [Special circumstances]  

The Commissioner may also remit all or a part of the penalty if the Commissioner is satisfied that there are special circumstances because of which it would be fair and reasonable to remit all or a part of the penalty.

SECTION 8AAT [Archive]   8AAT   FAILURE TO PAY THE PENALTY  
If any of the amount of penalty that a person is liable to pay remains unpaid after the day by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:


(a) started at the beginning of the day by which the amount of the penalty was due to be paid; and


(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:


(i) the penalty;

(ii) general interest charge on any of the penalty.
Note:

The general interest charge is worked out under Division 1.

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

SECTION 12-45 [Archive]   PAYMENT TO OFFICE HOLDER  

12-45(3)  
This subsection applies to a local governing body established by or under a *State law or *Territory law if:


(a) the body has unanimously resolved that it be treated as an eligible local governing body for the purposes of Division 2 of Part VI of the Income Tax Assessment Act 1936, or of this Division; and


(b) that body has not unanimously resolved to cancel the resolution.

For rules about such resolutions, see section 221B of the Income Tax Assessment Act 1936.

SECTION 16-75 [Archive]   WHEN AMOUNTS MUST BE PAID TO COMMISSIONER  

16-75(1)  

Note:

A different rule applies for certain kinds of amounts withheld during 2000-01. See section 16-120.

16-75(3)  

Note:

A different rule applies for certain kinds of amounts withheld during 2000-01. See section 16-120.

Special rules for 2000-01

SECTION 16-120 [Archive]   WHEN CERTAIN AMOUNTS MUST BE PAID TO THE COMMISSIONER  

16-120(1)  
Subject to subsection (2), if an entity withholds an amount under a provision listed in the table during a month in the *financial year starting on 1 July 2000, it must pay the amount to the Commissioner by the end of the 21st day of the next month.


Provisions under which amounts are withheld during 2000-01
Item Provision Subject matter
1 Section 12-140 Payment arising from investment: recipient does not quote tax file number
.
2 Section 12-145 Investor becoming presently entitled to income of a unit trust
.
3 Section 12-210 Dividend payment to overseas person
.
4 Section 12-215 Dividend payment received for a foreign resident
.
5 Section 12-245 Interest payment to overseas person
.
6 Section 12-250 Interest payment received for a foreign resident
.
7 Section 12-255 Interest payment derived by lender in carrying on business through overseas permanent establishment
.
8 Section 12-280 Royalty payment to overseas person
.
9 Section 12-285 Royalty payment received for a foreign resident
.
10 Section 12-320 Mining payment
.
11 Section 12-325 Natural resource payment

16-120(2)  
If:


(a) the amount is withheld during March 2001 or June 2001; and


(b)the entity is a *deferred BAS payer on the 21st day of the month (the next month ) after the month in which that amount is withheld;

the entity must pay that amount to the Commissioner by the end of the 28th day of the next month.

SECTION 16-125 [Archive]   MEANING OF LARGE WITHHOLDER  

16-125(1)  
An entity is a large withholder for a particular month (the current month ) in the *financial year starting on 1 July 2000 if:


(a) the entity was a large remitter in relation to June 2000 because of section 220AAB of the Income Tax Assessment Act 1936; or


(b) the total of the deductions that the entity made under Division 2 of Part VI of that Act for the financial year ending on 30 June 2000 exceeded $1 million; or


(c) the total of the entity's *labour hire notional withheld amounts (see subsections (2) to (4)) exceed $1 million; or


(d) at the end of 30 June 2000 the entity was included in a company group as defined in section 220AAI of that Act, and:


(i) the total of the deductions under Division 2 of Part VI of that Act, for the financial year ending on that day, made by the entities that were included in that company group at the end of that day, exceeded $1 million; or

(ii) the total of the labour hire notional withheld amounts (see subsections (2) to (4)) of entities that were included in that company group at the end of that day exceed $1 million; or


(e) the Commissioner determines under section 16-115 that the entity is a large withholder for the current month. Meaning of labour hire notional withheld amount

16-125(2)  
If during the *financial year ending on 30 June 2000 an entity made a payment from which section 12-60 (about payments under labour hire arrangements) would have required it to withhold an amount (if that section had applied to payments made during that financial year), that amount is a labour hire notional withheld amount of the entity.

16-125(3)  
If:


(a) during the *financial year ending on 30 June 2000 an entity provided a *non-cash benefit to an individual; and


(b) section 12-60 (about payments under labour hire arrangements) would have required the entity to withhold an amount if:


(i) instead of providing the benefit, the entity had paid the individual the *market value of the benefit; and

(ii) that section had applied to payments made during that financial year;

that amount is a labour hire notional withheld amount of the entity.

16-125(4)  
For the purposes of subsections (2) and (3), disregard subsection 12-60(2) (which allows the scope of section 12-60 to be extended by regulations).

Exception

16-125(5)  
However, an entity is not a *large withholder for a month if the Commissioner determines under section 16-110 that it is a *medium withholder or a *small withholder for that month.

SECTION 16-130 [Archive]   WHEN AND HOW SOME LARGE WITHHOLDERS MUST PAY AMOUNTS FOR JULY AND AUGUST 2000  

16-130(1)  
This section applies to an entity that is a *large withholder for July or August 2000 (otherwise than because of paragraph 16-125(1)(a)).

16-130(2)  
The entity must pay to the Commissioner an amount that it withholds during that month under Division 12 by the end of the 21st day after the end of that month.

16-130(3)  
The entity must pay to the Commissioner:


(a) any amount that it withholds under Division 12 during that month; and


(b) any amount that it pays to the Commissioner under Division 14 during that month;

by a means of *electronic payment, or any other means approved in writing by the Commissioner.

SECTION 16-135 [Archive]   MEANING OF MEDIUM WITHHOLDER  

16-135(1)  
An entity is a medium withholder for a particular month (the current month ) in the *financial year starting on 1 July 2000 if the entity is not a *large withholder for that month and:


(a) the entity:


(i) was a medium remitter in relation to June 2000 because of section 220AAJ of the Income Tax Assessment Act 1936; and

(ii) would still have been a medium remitter in relation to June 2000 because of that section if the only deductions taken into account under that section were deductions made under Division 2 of Part VI of that Act; or


(b) the total of the deductions that the entity made under Division 2 of Part VI of that Act for the *financial year ending on 30 June 2000 exceeded $25,000; or


(c) the Commissioner determines under section 16-110 or 16-115 that the entity is a medium withholder for the current month.

16-135(2)  
However, the entity is not a *medium withholder if the Commissioner determines under section 16-110 or 16-115 that the entity is a *large withholder or a *small withholder for the current month.

SECTION 45-70 [Archive]   WHEN ANNUAL INSTALMENTS ARE DUE  

45-70(1)  

For an instalment you are liable to pay for 2000-01 or 2001-02, see section 45-170.

Special rules for 2000-01 and 2001-02

SECTION 45-170 [Archive]   DUE DATE FOR ANNUAL INSTALMENT  

45-170(1)  
This section applies if you are liable to pay an annual instalment for the 2000-01 or 2001-02 income year.

45-170(2)  
The instalment is due on or before a day that is notified to you in writing by the Commissioner and is at least 30 days after the Commissioner gives you the notice. If that day is earlier than 31 March in that income year, the instalment is due on or before that 31 March.

45-170(3)  
However, in the case of an entity that is an instalment taxpayer for that income year (as defined by subsection 221AZK(1) of the Income Tax Assessment Act 1936), the instalment is due on or before the 15th day of the 6th month after the end of that income year.

SECTION 45-175 [Archive]   AMOUNT OF ANNUAL INSTALMENT  

45-175(1)  
Unless subsection (2) applies, the amount of an annual instalment you are liable to pay for the 2000-01 or 2001-02 income year is whichever of the following you choose:


(a) your most recent *notional tax notified by the Commissioner at least 30 days before the day on which the instalment is due;


(b) the amount that you estimate will be your *benchmark tax for the income year.

Note:

You may be liable to general interest charge under section 45-235 if working out your instalment under paragraph (b) leads you to pay an instalment that is less than 85% of your benchmark tax for the income year (worked out by the Commissioner under section 45-365).

45-175(2)  
If an entity is an instalment taxpayer (as defined by subsection 221AZK(1) of the Income Tax Assessment Act 1936) for the 2000-01 or 2001-02 income year, the amount of an annual instalment that the entity is liable to pay for that income year is worked out under section 45-115, as if that section applied to that income year.

SECTION 45-180 [Archive]   ENTITY THAT BECOMES GST REGISTERED, PARTICIPANT IN GST JOINT VENTURE, OR COMPANY GROUP MEMBER STOPS BEING ANNUAL PAYER  

45-180(1)  
You stop being an *annual payer if, during an *instalment quarter in the 2000-01 or 2001-02 income year:


(a) you become registered, or *required to be registered, under Part 2-5 of the *GST Act; or


(b) you become a partner in a partnership that is registered, or required to be registered, under that Part; or


(c) a partnership in which you are a partner becomes registered, or required to be registered, under that Part; or


(d) in the case of a company - the company becomes a *participant in a *GST joint venture under Division 51 of that Act; or


(e) in the case of a company - the company becomes part of an *instalment group.

45-180(2)  
You must pay an instalment for the first *instalment quarter in the next income year and instalments for later instalment quarters if subsection 45-50(1) or (2) requires you to do so.

45-180(3)  
You must still pay an annual instalment for the income year referred to in subsection (1).

45-180(4)  
You may again become an *annual payer if:


(a) you again satisfy the conditions in section 45-140; and


(b) you again choose under that section to pay instalments annually.

SECTION 250-10 [Archive]   SUMMARY OF TAX-RELATED LIABILITIES  

250-10(1)  


Tax-related liabilities under the Income Tax Assessment Act 1936
Item Topic Provision
60 TFN withholding tax 221YHZW

250-10(2)  


Tax-related liabilities under other legislation
Item Topic Provision Act
75 failure to notify penalty 8AAL Taxation Administration Act 1953
.
80 late reconciliation statement penalty 8AAR Taxation Administration Act 1953
.
150 tobacco charge 17(1) Tobacco Charges Assessment Act 1955
.
155 additional charge 17(1A) Tobacco Charges Assessment Act 1955
.
157 trust recoupment tax 4(1), so far as it applies section 204 of the Income Tax Assessment Act 1936 Trust Recoupment Tax Assessment Act 1985
.
160 wool tax 36(1) Wool Tax (Administration) Act 1964
.
165 additional tax 36(2) Wool Tax (Administration) Act 1964

SECTION 298-25 [Archive]   298-25   GENERAL INTEREST CHARGE ON UNPAID PENALTY  


Note:

The general interest charge is worked out under Division 1 of Part IIA.