Document ID: chunk:federal_register_of_legislation:F2024L01686:reg:11
Version: federal_register_of_legislation:F2024L01686
Segment Type: reg
Provision Reference: reg 11
Character Range: 6391–7315

11  Interest on judgment for payment of tax and other amounts – effect on penalty
 (1) This section applies if:
 (a) judgment is given by, or entered in, a court for the payment by a person of an amount (the total judgment amount) that includes tax; and
 (b) the judgment carries interest (judgment interest).
 (2) Subject to subsection (3), the judgment does not affect the application of section 7 in relation to the tax.
 (3) Subject to subsection (4), all the penalty payable by the person in relation to the tax (whether or not the penalty was payable before the judgment was given) is reduced by an amount worked out as follows:
 (a) first, work out the proportion of tax to the total judgment amount (the tax proportion);
 (b) second, work out the proportion of judgment interest that is the same as the tax proportion.
 (4) All the penalty payable by the person in relation to the tax cannot be reduced below zero.