ATO Interpretative Decision

ATO ID 2001/655 (Withdrawn)

Income Tax

Deductions - general interest charge
FOI status: may be released

This ATO ID is withdrawn and replaced by ATO ID 2002/380.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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)

Related ATO Interpretative Decisions
ATO ID 2002/380 ATO ID 2001/654

Keywords
Deductions
General interest charge

Business Line: Small Business/Individual Taxpayers

Date of publication: 30 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	5 July 2001	Original statement
You are here	28 April 2003	Archived

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