LOAN (INCOME EQUALIZATION DEPOSITS) ACT 1976 (REPEALED)

***** Repealed 22 February 2005 *****

PART III - REPAYMENT OF DEPOSITS

SECTION 20D PENALTY TAX PAYABLE IF ASSESSABLE AMOUNTS UNDERSTATED

20D Where:

(a) in a statement under section 18 or 20A, a person understates the assessable amount, or states incorrectly that there is no assessable amount, in relation to a repayment; and

(b) as a result, the deduction that the authorized person is required to make under section 20B from the repayment is less by an amount (in this section called the ``lost withholding amount'' ) than the deduction that would have been required if there had been a statement of the correct assessable amount;

the person is liable to pay to the Commissioner, by way of penalty, an amount at the rate of 20% per annum, on the lost withholding amount, from the time of the repayment until:

(c) where the assessable amount is included in the assessable income of the owner of the deposit concerned for the year of income in which the repayment is made - the time of making of the owner's assessment for that year of income; or

(d) where the assessable amount is included in the assessable income of the owner of the deposit concerned for an earlier year of income - the time of making, or amending, as the case requires, the owner's assessment for that year of income.

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