INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3A - Collection of tax in respect of certain payments for work  

Subdivision B - Operative provisions  

SECTION 221YHH   FAILURE TO MAKE DEDUCTIONS FROM PRESCRIBED PAYMENTS  

221YHH(1)   [Liability to pay penalty]  

If an eligible paying authority, other than a government body, which makes a prescribed payment to a payee does not deduct from the payment the amount required to be deducted under this Division, the eligible paying authority is liable to pay to the Commissioner an amount, by way of penalty, equal to the amount not deducted.

221YHH(2)   [Time for payment of penalty]  

The eligible paying authority must pay the penalty amount by the time by which the eligible paying authority, if it had deducted the amount required to be deducted, would have been required to pay that amount to the Commissioner.

221YHH(3)   [Liability to pay general interest charge]  

If any of the penalty amount remains unpaid after the time by which it is due to be paid, the eligible paying authority is liable to pay the general interest charge on the unpaid penalty amount for each day in the period that:

(a) started at the beginning of the day by which the penalty amount 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 amount;

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

Note:

The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .

221YHH(4)   Government bodies.  

If a government body that is an eligible paying authority makes a prescribed payment to a payee and does not deduct from the payment the amount required to be deducted under this Division, the government body is liable to pay the general interest charge on the amount not deducted for each day in the period that:

(a) started at the beginning of the day by which, if the government body had deducted the amount, the government body would have been required to pay that amount to the Commissioner; and

(b) finishes at the end of 30 June in the financial year in which that day occurred.

Note:

The general interest charge does not apply to the Commonwealth or authorities of the Commonwealth: see subsection 8AAB(3) of the Taxation Administration Act 1953 .