Document ID: chunk:federal_register_of_legislation:C2005A00075:clause:1_1:p1
Version: federal_register_of_legislation:C2005A00075
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/3)
Character Range: 1388–4166

1  Before Division 284 in Schedule 1
Insert:

Division 280—Shortfall interest charge

Table of Subdivisions

 Guide to Division 280
280‑A Object of Division
280‑B Shortfall interest charge
280‑C Remitting shortfall interest charge

Guide to Division 280

280‑1  Guide to Division 280

      The shortfall interest charge applies to shortfalls of income tax that are revealed when the Commissioner amends your assessment.
      The charge is applied at a uniform rate that is lower than the general interest charge rate.
      The Commissioner has a discretion to remit shortfall interest charge.

Subdivision 280‑A—Object of Division

Table of sections

280‑50 Object of Division

280‑50  Object of Division

  The object of this Division is to neutralise benefits that taxpayers could otherwise receive from shortfalls of income tax, so that they do not receive an advantage in the form of a free loan over those who assess correctly.

Subdivision 280‑B—Shortfall interest charge

Table of sections

280‑100 Liability to shortfall interest charge
280‑105 Amount of shortfall interest charge
280‑110 Notification by Commissioner

280‑100  Liability to shortfall interest charge

 (1) You are liable to pay *shortfall interest charge on an additional amount of income tax that you are liable to pay because the Commissioner amends your assessment for an income year.

 (2) The liability is for each day in the period:
 (a) beginning at the start of the day on which income tax under your first assessment for that income year was due to be paid, or would have been due to be paid if there had been any; and
 (b) ending at the end of the day before the day on which the Commissioner gave you notice of the amended assessment.

 (3) However, if an amended assessment reinstates all or part of a liability in relation to a particular that had been reduced by an earlier amended assessment, the period for the reinstated liability begins at the start of the day on which income tax under the earlier amended assessment was due to be paid, or would have been due to be paid if there had been any.

Note: See section 204 of the Income Tax Assessment Act 1936 for when the amount of income tax and shortfall interest charge becomes due and payable. That section also provides for general interest charge on any part of the additional amount (plus any shortfall interest charge) that remains unpaid after the additional amount is due and payable.

 (4) Your liability to pay *shortfall interest charge exists whether or not you are liable to any penalty under this Act.

 (5) Neither the Commonwealth nor an authority of the Commonwealth is liable to pay *shortfall interest charge.

280‑105  Amount of shortfall interest charge

 (1) The *shortfall interest charge for a day is