Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_4:p1
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/22)
Character Range: 864458–868314

4                                                                            A variation GIC component is the *general interest charge you are liable to pay under:                                                                                                                                                  The amount worked out as follows:
                                                                             (a) subsection 45‑230(2) (varied instalment rate); or                                                                                                                                                                                   (a) if you are liable to pay the charge—the amount of the charge; or
                                                                             (b) subsection 45‑232(2) (estimated benchmark tax); or                                                                                                                                                                                  (b) otherwise—nil.
                                                                             (c) subsection 45‑235(2) or (3) (annual instalment);
                                                                             because of how your instalment for an *instalment quarter in the income year, or for the income year, was worked out.

Example: A scheme results in X Pty Ltd being able to choose to be an annual payer for the 2000‑01 income year.
 The following table shows the actual tax position of X Pty Ltd for that year, and also its hypothetical tax position as defined in section 45‑615. X Pty Ltd has got 4 tax benefits from the scheme: one for each of the 4 instalment quarters.

2000‑01 income year
For this component:                                           The amount of that component of the actual tax position is:  The amount of that component of the hypothetical tax position is:
Quarterly instalment component for first instalment quarter   nil                                                          $3,000
Quarterly instalment component for second instalment quarter  nil                                                          $4,000
Quarterly instalment component for third instalment quarter   nil                                                          $3,000
Quarterly instalment component for fourth instalment quarter  nil                                                          $2,000
Annual instalment component                                   $12,000                                                      nil

45‑615  What is your hypothetical tax position for an income year?
  Your hypothetical tax position for an income year is what would have been, or what could reasonably be expected to have been, your *tax position for the income year if the *scheme had not been entered into or carried out.

45‑620  Amount on which GIC is payable, and period for which it is payable
 (1) You are liable to pay the *general interest charge on twice the *tax benefit mentioned in paragraph 45‑600(1)(a).
Note 1: To the extent that you also got a tax detriment from the scheme, you get a credit: see section 45‑625.
Note 2: In special circumstances the Commissioner can remit some or all of the general interest charge: see section 45‑640.
 (2) You are liable to pay the charge for each day in the period that:
 (a) started at the beginning of the day by which your instalment for the period mentioned in the applicable item of the table in section 45‑610 was due to be paid, or would have been due to be paid if you had been liable to pay an instalment for that period; and
 (b) finishes at the end of the day on which your assessed tax for the income year is due to be paid.
 (3) The Commissioner must give you written notice of the *general interest charge to which you are liable under