Taxation Ruling
IT 2260
Income tax : conditional requests for extensions of time to pay tax
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FOI status:
May be releasedFOI number: I 1206052PREAMBLE
Situations have arisen where correspondence has been received in the Taxation Office from taxpayers or their agents seeking the Commissioner's agreement to certain arrangements relating to the settlement of taxation debts. Generally, the arrangements have called for an extension of time for payment without additional tax for late payment accruing. A significant feature of the correspondence has been the inclusion of a condition along the lines that unless the taxpayer or agent hears from the Taxation Office to the contrary, it will be assumed that the Commissioner has agreed to the terms of the arrangement put forward.
2. In dealing with letters of this kind, it is considered that the principle underlying the Taxation Office's treatment of conditional payments - as set out in Taxation Ruling No. IT 2035 - has application.
RULING
3. A taxpayer who is not in a position to pay a taxation liability by the due date may apply to the Commissioner for extended time for payment. Any terms or conditions which may be included in a request for extended time for payment are not binding on the Commissioner, nor is the absence of a response to such request an implied acceptance of those terms or conditions. The question of whether or not extended time for payment is granted is one for the Commissioner to determine and until such time as the Commissioner notifies the taxpayer or agent to the contrary, the amount outstanding remains due and payable on the date specified and continues to attract additional tax for late payment.
COMMISSIONER OF TAXATION
3 March 1986