Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 162.175

  (1)   You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if you have a * varied instalment amount for the GST instalment quarter, and:

  (a)   if the instalment tax period is a * financial year--the sum of your * GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your * annual GST liability for the instalment tax period; or

  (b)   if the instalment tax period is only part of a financial year--the sum of:

  (i)   your * GST instalments for all the GST instalment quarters of the instalment tax period; and

  (ii)   your * early net amounts for the financial year (subtracting any of those amounts that are less than zero);

    is less than 85% of your annual GST liability for the instalment tax period.

  (2)   The amount of the penalty, for a particular day, is worked out by applying the * general interest charge:

  (a)   for each day in the period in section   162 - 190; and

  (b)   in the way set out in subsection   8AAC(4) of the Taxation Administration Act 1953 ;

to your * GST instalment shortfall, under this section, for the * GST instalment quarter.

  (3)   Your GST instalment shortfall , under this section, for the * GST instalment quarter is the amount worked out as follows:

where:

"GST already payable" is the sum of:

  (a)   the * varied instalment amount; and

  (b)   all your other * GST instalments (if any) for earlier * GST instalment quarters of the * instalment tax period in question; and

  (c)   if the instalment tax period is only part of a * financial year--your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).

  (4)   However, if:

  (a)   the * GST instalment quarter is not the first GST instalment quarter of the * instalment tax period in question; and

  (b)   you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;

then:

  (c)   your GST instalment shortfall , under this section, for the * GST instalment quarter is the difference between:

  (i)   the amount worked out using the formula in subsection   (3); and

  (ii)   the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and

  (d)   if that sum is greater than the amount worked out using the formula in subsection   (3)--you are not liable to pay a penalty under this section in relation to the GST instalment quarter.

  (5)   The appropriate percentage for a * GST instalment quarter is:

  (a)   if the GST instalment quarter ends on 30   September--25%; or

  (b)   if the GST instalment quarter ends on 31   December--50%; or

  (c)   if the GST instalment quarter ends on 31   March--75%; or

  (d)   if the GST instalment quarter ends on 30   June--100%.