Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (TRANSFER OF PROVISIONS) ACT 2010 - SCHEDULE 1

Part   1 -- Main amendments

Income Tax Assessment Act 1936

1   After section   169

Insert:

169AA   Consolidated assessments

  (1)   This section applies if 2 or more persons (the recipients ) are in receipt of income, or of profits or gains of a capital nature, for or on behalf of:

  (a)   a non - resident; or

  (b)   a person absent from Australia.

  (2)   The Commissioner may, if it appears to him or her to be expedient to do so:

  (a)   consolidate all or any of the assessments of the income, profits or gains; and

  (b)   declare one of the recipients to be the agent of the non - resident or absent person in respect of the consolidated assessment; and

  (c)   require the agent to pay income tax on the amount assessed.

  (3)   If the Commissioner does so, the agent is liable to pay the tax.

2   Part   VI

Repeal the Part.

Income Tax Assessment Act 1997

3   After Division   4

Insert:

Division   5 -- How to work out when to pay your income tax

Table of Subdivisions

  Guide to Division   5

5 - A   How to work out when to pay your income tax

Guide to Division   5

5 - 1   What this Division is about

Subdivision   5 - A -- How to work out when to pay your income tax

Table of sections

5 - 5   When income tax is payable

5 - 10   When shortfall interest charge is payable

5 - 15   General interest charge payable on unpaid income tax or shortfall interest charge

5 - 5   When income tax is payable

Scope

  (1)   This section tells you when income tax you must pay for a * financial year is due and payable.

Note:   The Commissioner may defer the time at which the income tax is due and payable: see section   255 - 10 in Schedule   1 to the Taxation Administration Act 1953 .

  (2)   The income tax is only due and payable if the Commissioner makes an * assessment of your income tax for the year.

  (3)   However, if the Commissioner does make an * assessment of your income tax for the year, the tax may be taken to have been due and payable at a time before your assessment was made.

Note:   This is to ensure that general interest charge begins to accrue from the same date for all like entities. General interest charge on unpaid income tax is calculated from when the tax is due and payable, not from when the assessment is made: see section   5 - 15.

Original assessments--self - assessment entities

  (4)   If you are a * self - assessment entity, the income tax is due and payable on the first day of the sixth month after the end of the income year.

Example:   If your income year is the same as the financial year, your income tax would be due and payable on 1   December.

Original assessments--other entities

  (5)   If you are not a * self - assessment entity, the income tax is due and payable 21 days after the day (the return day ) on or before which you are required to lodge your * income tax return with the Commissioner.

Note:   For rules about income tax returns and when they are due, see Part   IV of the Income Tax Assessment Act 1936 .

  (6)   However, if you lodge your return on or before the return day and the Commissioner gives you a notice of * assessment (other than an amended assessment) after the return day, the income tax is due and payable 21 days after the Commissioner gives you the notice.

Amended assessments

  (7)   If the Commissioner amends your * assessment, any extra income tax resulting from the amendment is due and payable 21 days after the day on which the Commissioner gives you notice of the amended assessment.

Note:   Shortfall interest charge may be payable, on any amount of extra income tax payable as a result of the amended assessment, for each day in the period that:

(a)   starts at the time income tax was due and payable on your original assessment; and

(b)   ends the day before the day on which the Commissioner gives you notice of the amended assessment.

5 - 10   When shortfall interest charge is payable

    An amount of * shortfall interest charge that you are liable to pay is due and payable 21 days after the day on which the Commissioner gives you notice of the charge.

Note:   Shortfall interest charge is imposed if the Commissioner amends an assessment and the amended assessment results in an increase in some tax payable. For provisions about liability for shortfall interest charge, see Division   280 in Schedule   1 to the Taxation Administration Act 1953 .

5 - 15   General interest charge payable on unpaid income tax or shortfall interest charge

    If an amount of income tax or * shortfall interest charge that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that:

  (a)   starts at the beginning of the day on which the amount was due to be paid; and

  (b)   finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

  (i)   the income tax or shortfall interest charge;

  (ii)   general interest charge on any of the income tax or shortfall interest charge.

Note 1:   The general interest charge is worked out under Part   IIA of the Taxation Administration Act 1953 .

Note 2:   Shortfall interest charge is worked out under Division   280 in Schedule   1 to that Act.

4   Subsection 995 - 1(1)

Insert:

"self-assessment entity" means a full self - assessment taxpayer (within the meaning of subsection 6(1) of the Income Tax Assessment Act 1936 ).

5   Subsection 995 - 1(1)

Insert:

"statutory demand" has the same meaning as in the Corporations Act 2001 .

Taxation Administration Act 1953

6   Before subsection 255 - 10(1) in Schedule   1

Insert:

Deferrals for particular taxpayers

7   After subsection 255 - 10(2) in Schedule   1

Insert:

Deferrals for classes of taxpayers

  (2A)   The Commissioner, having regard to the circumstances of the case, may, by notice published on the Australian Taxation Office website, defer the time at which amounts of * tax - related liabilities are, or would become, due and payable by a class of taxpayers (whether or not the liabilities have already arisen).

  (2B)   If the Commissioner does so, that time is varied accordingly.

Note:   General interest charge and any other relevant penalties, if applicable for any unpaid amounts of the liabilities, will begin to accrue from the time as varied. See, for example, paragraph 5 - 15(a) of the Income Tax Assessment Act 1997 .

  (2C)   A notice published under subsection   (2A) is not a legislative instrument.

Deferral does not affect time for giving form

8   Subsection 255 - 10(3) in Schedule   1

Omit "subsection   (1)", substitute "this section".

9   At the end of Division   255 in Schedule   1

Add:

Subdivision   255 - D -- Security deposits

Table of sections

255 - 100   Commissioner may require security deposit

255 - 105   Notice of requirement to give security

255 - 110   Offence

255 - 100   Commissioner may require security deposit

  (1)   The Commissioner may require you to give security for the due payment of an existing or future * tax - related liability of yours if:

  (a)   the Commissioner has reason to believe that:

  (i)   you are establishing or * carrying on an * enterprise in Australia; and

  (ii)   you intend to carry on that enterprise for a limited time only; or

  (b)   the Commissioner reasonably believes that the requirement is otherwise appropriate, having regard to all relevant circumstances.

Note:   A requirement to give security under this section is not a tax - related liability. As such, the collection and recovery provisions in this Part do not apply to it.

  (2)   The Commissioner may require you to give the security:

  (a)   by way of a bond or deposit (including by way of payments in instalments); or

  (b)   by any other means that the Commissioner reasonably believes is appropriate.

  (3)   The Commissioner may require you to give security under this section:

  (a)   at any time the Commissioner reasonably believes is appropriate; and

  (b)   as often as the Commissioner reasonably believes is appropriate.

Example:   The Commissioner may require additional security if he or she reasonably believes that the original security requirement underestimated the amount of the likely tax - related liability.

255 - 105   Notice of requirement to give security

Commissioner must give notice of requirement to give security

  (1)   If the Commissioner requires you to give security under section   255 - 100, he or she must give you written notice of the requirement.

Content of notice

  (2)   The notice must:

  (a)   state that you are required to give the security to the Commissioner; and

  (b)   explain why the Commissioner requires the security; and

  (c)   set out the amount of the security; and

  (d)   describe the means by which you are required to give the security under subsection 255 - 100(2); and

  (e)   specify the time by which you are required to give the security; and

  (f)   explain how you may have the Commissioner's decision to require you to give the security reviewed.

  (3)   To avoid doubt, a single notice may relate to security for the payment of 2 or more existing or future * tax - related liabilities, but must comply with subsection   (2) in relation to each of them.

When notice is given

  (4)   Despite section   29 of the Acts Interpretation Act 1901 , a notice under subsection   (1) is taken to be given at the time the Commissioner leaves or posts it.

Note:   Section   28A of the Acts Interpretation Act 1901 may be relevant to giving a notice under subsection   (1).

Miscellaneous

  (5)   A failure to comply with this section does not affect the validity of the requirement to give the security under section   255 - 100.

255 - 110   Offence

    You commit an offence if:

  (a)   the Commissioner requires you to give security under section   255 - 100; and

  (b)   you fail to give that security as required.

Penalty:   100 penalty units.

10   At the end of Part   4 - 15 in Schedule   1

Add:

Division   268 -- Estimates and recovery of PAYG withholding liabilities

Table of Subdivisions

  Guide to Division   268

268 - A   Object

268 - B   Making estimates

268 - C   Liability to pay estimates

268 - D   Reducing and revoking estimates

268 - E   Late payment of estimates

268 - F   Miscellaneous

Guide to Division   268

268 - 1   What this Division is about

Subdivision   268 - A -- Object

Table of sections

268 - 5   Object of Division

268 - 5   Object of Division

    The object of this Division is to enable the Commissioner to take prompt and effective action to recover amounts not paid as required by Part   2 - 5 (Pay as you go (PAYG) withholding).

Subdivision   268 - B -- Making estimates

Table of sections

268 - 10   Commissioner may make estimate

268 - 15   Notice of estimate

268 - 10   Commissioner may make estimate

Estimate

  (1)   The Commissioner may estimate the unpaid and overdue amount of a liability (the underlying liability ) of yours under section   16 - 70.

Note:   Section   16 - 70 requires you to pay to the Commissioner amounts you have withheld under the Pay as you go withholding rules.

Amount of estimate

  (2)   The amount of the estimate must be what the Commissioner thinks is reasonable.

  (3)   In making the estimate, the Commissioner may have regard to anything he or she thinks relevant.

Example:   The Commissioner may have regard to information about amounts you withheld under the Pay as you go rules before the period in relation to which the underlying liability arose.

Only one estimate for each liability

  (4)   While the estimate is in force, the Commissioner cannot make another estimate relating to the underlying liability.

  (5)   For the purposes of subsection   (4), the estimate is in force if:

  (a)   the Commissioner has given you notice of the estimate; and

  (b)   the estimate has not been revoked; and

  (c)   your liability to pay the estimate has not been discharged.

268 - 15   Notice of estimate

Commissioner must give notice of estimate

  (1)   The Commissioner must give you written notice of the estimate.

Content of notice

  (2)   The notice must:

  (a)   identify the underlying liability; and

  (b)   specify the date of the estimate; and

  (c)   set out the amount of the estimate; and

  (d)   state that the amount of the estimate is due and payable; and

  (e)   explain how you may have the amount of the estimate reduced or the estimate revoked.

  (3)   To avoid doubt, a single notice may relate to 2 or more estimates, but must comply with subsection   (2) in relation to each of them.

When notice is given

  (4)   Despite section   29 of the Acts Interpretation Act 1901 , a notice under subsection   (1) is taken to be given at the time the Commissioner leaves or posts it.

Note:   Section   28A of the Acts Interpretation Act 1901 may be relevant to giving a notice under subsection   (1).

Subdivision   268 - C -- Liability to pay estimates

Table of sections

268 - 20   Nature of liability to pay estimate

268 - 25   Accuracy of estimate irrelevant to liability to pay

268 - 30   Estimate provable in bankruptcy or winding up

268 - 20   Nature of liability to pay estimate

Liability to pay amount of estimate

  (1)   You must pay to the Commissioner the amount of the estimate if the Commissioner gives you notice of the estimate in accordance with section   268 - 15. The amount is due and payable when the Commissioner gives you the notice.

Note:   The amount of the estimate may be reduced, or the estimate revoked, under Subdivision   268 - D.

Liability to pay amount of estimate is distinct from underlying liability

  (2)   Your liability to pay the amount of the estimate is separate and distinct from the underlying liability. It is separate and distinct for all purposes.

Example:   The Commissioner may take:

(a)   proceedings to recover the unpaid amount of the estimate; or

(b)   proceedings to recover the unpaid amount of the underlying liability; or

(c)   proceedings of both kinds.

Discharging one liability discharges other liabilities

  (3)   Despite subsection   (2), if, at a particular time, one of the liabilities to which this subsection applies is discharged, to the extent of an amount, for either of the following reasons, each of the other liabilities to which this subsection applies is discharged to the extent of the same amount:

  (a)   an amount is paid or applied towards discharging the liability;

  (b)   the liability is discharged because of section   269 - 40 (Effect of director paying penalty or company discharging liability).

  (4)   Subsection   (3) applies to whichever of the following liabilities are in existence at the particular time:

  (a)   your liability to pay the amount of the estimate;

  (b)   the underlying liability;

  (c)   a liability of yours under a judgment, to the extent that it is based on a liability referred to in paragraph   (a) or (b).

  (5)   Subsection   (3) does not discharge a liability to a greater extent than the amount of the liability.

268 - 25   Accuracy of estimate irrelevant to liability to pay

    You are liable to pay the unpaid amount of the estimate even if:

  (a)   the underlying liability never existed or has been discharged in full; or

  (b)   the unpaid amount of the underlying liability is less than the unpaid amount of the estimate.

Note 1:   Section   268 - 40 revokes the estimate if you give the Commissioner a statutory declaration, or file an affidavit, to the effect that the underlying liability never existed.

Note 2:   Subdivision   268 - D provides ways in which you can challenge the estimate or its amount.

268 - 30   Estimate provable in bankruptcy or winding up

  (1)   Your liability (the estimate liability ) to pay the unpaid amount of the estimate is provable in a bankruptcy or winding up, even if the estimate was made after:

  (a)   the date of the bankruptcy; or

  (b)   the relevant date (within the meaning of the Corporations Act 2001 ).

  (2)   However, the estimate liability is provable only to the extent that the underlying liability would be provable if the unpaid amount of the underlying liability were the same as the unpaid amount of the estimate.

Example:   Subsection   (2) prevents proof of the estimate liability if the underlying liability could not be proved because, for example, of when it arose.

  (3)   Subsections   (1) and (2) do not apply if:

  (a)   the underlying liability has already been admitted to proof; and

  (b)   the proof has not been set aside.

  (4)   If the estimate liability has been admitted to proof at a particular amount, the underlying liability is provable only to the extent the unpaid amount of the underlying liability exceeds that particular amount.

  (5)   To the extent that a liability is provable because of this section, it is taken, for the purposes of the Bankruptcy Act 1966 , to be provable in bankruptcy under that Act.

Subdivision   268 - D -- Reducing and revoking estimates

Table of sections

268 - 35   How estimate may be reduced or revoked--Commissioner's powers

268 - 40   How estimate may be reduced or revoked--statutory declaration or affidavit

268 - 45   How estimate may be reduced or revoked--rejection of proof of debt

268 - 50   How estimate may be reduced--amount paid or applied

268 - 55   When reduction or revocation takes effect

268 - 60   Consequences of reduction or revocation--refund

268 - 65   Consequences of reduction or revocation--statutory demand changed or set aside

268 - 70   Consequences of reduction or revocation--underlying liability

268 - 35   How estimate may be reduced or revoked--Commissioner's powers

Reduction

  (1)   The Commissioner may at any time reduce the amount of the estimate, but is not obliged to consider whether or not to do so.

  (2)   If the Commissioner reduces the amount of the estimate under subsection   (1), he or she must give you a written notice that:

  (a)   identifies the underlying liability; and

  (b)   sets out the reduced amount of the estimate.

Note:   The estimate is taken always to have had effect as reduced: see section   268 - 55.

Revocation

  (3)   The Commissioner may at any time revoke the estimate, but is not obliged to consider whether or not to do so.

  (4)   If the Commissioner revokes the estimate under subsection   (3), he or she must give you a written notice that:

  (a)   identifies the underlying liability; and

  (b)   states that the estimate has been revoked.

Note:   The estimate is taken never to have been made: see section   268 - 55.

Matters for Commissioner to consider

  (5)   In exercising his or her power under this section to reduce the amount of the estimate, or to revoke the estimate, the Commissioner must have regard to:

  (a)   the following principles:

  (i)   the estimate is of the unpaid amount of the underlying liability as at a particular time;

  (ii)   the purpose of reducing the amount of the estimate is to bring it closer to the unpaid amount of the underlying liability as at the time the estimate was made;

  (iii)   reductions of the unpaid amount of the underlying liability that happen after the time the estimate was made are dealt with by section   268 - 20 (Nature of liability to pay estimate) and so should not be taken into account in exercising such a power; and

  (b)   the effects of sections   268 - 55 and 268 - 70 (effect of reduction or revocation on liabilities).

268 - 40   How estimate may be reduced or revoked--statutory declaration or affidavit

Scope

  (1)   This section applies as set out in the following table:

Example:   For the purposes of item   2 of the table, taking a procedural step as a party to proceedings includes entering an appearance, filing a notice of intention to defend, or applying to set aside judgment entered in default of appearance.

Note 1:   Section   459C of the Corporations Act 2001 creates a presumption that a company is insolvent, and may be wound up, if the company fails to comply with a statutory demand.

Note 2:   See section   268 - 90 for what the statutory declaration or affidavit must contain and who must make, swear or affirm it.

Reduction

  (2)   The amount of the estimate is reduced if the statutory declaration is to the effect, or the affidavit verifies facts sufficient to prove, that a specified lesser amount is the unpaid amount of the underlying liability.

Example:   Subsection   (2) will apply if the statutory declaration etc. is to the effect that the underlying liability has been discharged in full (and therefore the unpaid amount of the liability is nil).

  (3)   The amount of the reduction is the amount by which the unpaid amount of the estimate (just before the reduction) exceeds the amount specified.

Note:   The effect of subsection   (3) is to reduce the unpaid amount of the estimate to the amount specified.

Revocation

  (4)   The estimate is revoked if the statutory declaration is to the effect, or the affidavit verifies facts sufficient to prove, that the underlying liability never existed.

268 - 45   How estimate may be reduced or revoked--rejection of proof of debt

Scope

  (1)   This section applies if:

  (a)   the Commissioner lodges a proof of debt relating to the unpaid amount of the estimate; and

  (b)   section   268 - 95 applies to an entity (your supervising entity ) in relation to you.

Rejection of proof of debt

  (2)   Your supervising entity may give the Commissioner a statutory declaration to the effect that:

  (a)   the underlying liability has been discharged in full; or

  (b)   the unpaid amount of the underlying liability is a specified, lesser amount; or

  (c)   the underlying liability never existed.

Note:   See section   268 - 90 for what the statutory declaration must contain and who must make it.

  (3)   If your supervising entity does so, he or she may reject the proof of debt (in whole or in part) on the ground made out in the statutory declaration.

  (4)   If the Commissioner appeals, or applies for review of, your supervising entity's decision to reject the proof of debt, nothing in subsection   (2) or (3) prevents evidence being adduced to contradict statements in the declaration.

Note:   Such evidence might also be relevant to a prosecution for an offence, such as an offence against section   11 of the Statutory Declarations Act 1959 (False declarations).

Revocation or reduction of estimate

  (5)   The following table applies in relation to the outcome following all (if any) appeals from, and applications for review of, your supervising entity's decision to reject the proof of debt. (If there are no appeals or applications for review, the outcome is your supervising entity's decision as originally made.)

Note 1:   The effect of item   1 of the table is to reduce the unpaid amount of the estimate to nil.

Note 2:   The effect of item   2 of the table is to reduce the unpaid amount of the estimate to the amount admitted to proof.

268 - 50   How estimate may be reduced--amount paid or applied

  (1)   This section applies if:

  (a)   an amount is paid or applied towards discharging your liability to pay the amount of the estimate; and

  (b)   the amount paid or applied exceeds the unpaid amount of the underlying liability as at the time just before the payment or application.

  (2)   The amount of the estimate is reduced so that it does not exceed the unpaid amount, at the time mentioned in paragraph   (1)(b), of the underlying liability.

268 - 55   When reduction or revocation takes effect

Scope

  (1)   This section applies for the purposes of the following:

  (a)   Subdivision   268 - C (Liability to pay estimates);

  (b)   section   268 - 60 (refund of overpayments);

  (c)   Subdivision   268 - E (Late payment of estimates);

  (d)   Division   269 (Penalties for directors of non - complying companies).

When reduction or revocation takes effect

  (2)   If the amount of the estimate is reduced, the estimate has effect, and is taken always to have had effect, as if the original amount of the estimate had been the reduced amount.

  (3)   If the estimate is revoked, the estimate is taken never to have been made.

268 - 60   Consequences of reduction or revocation--refund

  (1)   This section applies if:

  (a)   an amount is paid or applied towards discharging your liability to pay the amount of the estimate; and

  (b)   the amount paid or applied exceeds the unpaid amount of the estimate as at the time just before the payment or application.

Example:   You pay an amount towards discharging the estimate and the estimate is later reduced to a lesser amount.

Note:   Section   268 - 50 provides for the reduction of the amount of the estimate in the case of overpayment.

  (2)   The Commissioner must pay you the excess.

Note:   See Division   3A of Part   IIB of this Act for the rules about how the Commissioner must pay you. Division   3 of that Part allows the Commissioner to apply the amount owing as a credit against tax debts that you owe the Commonwealth.

268 - 65   Consequences of reduction or revocation--statutory demand changed or set aside

Scope

  (1)   This section applies if:

  (a)   the estimate is of the unpaid amount of a liability of a company; and

  (b)   the Commissioner has served a * statutory demand on the company relating to the company's liability to pay the unpaid amount of the estimate; and

  (c)   the amount of the estimate is later reduced, or the estimate is revoked.

Statutory demand changed

  (2)   The * statutory demand is changed accordingly.

  (3)   The * statutory demand is taken to have had effect (as so changed) from the time the Commissioner served it on the company.

Statutory demand set aside

  (4)   The * statutory demand is set aside if subsection   (2) reduces the amount of the debt (or the total of the amounts of the debts) below the statutory minimum (within the meaning of the Corporations Act 2001 ).

268 - 70   Consequences of reduction or revocation--underlying liability

    Reduction of the amount of the estimate, or revocation of the estimate, does not affect the Commissioner's rights or remedies in relation to the underlying liability (except to the extent that this Division expressly provides otherwise).

Subdivision   268 - E -- Late payment of estimates

Table of sections

268 - 75   Liability to pay the general interest charge

268 - 80   Effect of paying the general interest charge

268 - 75   Liability to pay the general interest charge

  (1)   This section applies if your liability to pay the amount of the estimate remains undischarged at the end of 7 days after the Commissioner gives you notice of the estimate.

  (2)   You are liable to pay the * general interest charge on the unpaid amount of the estimate for each day in the period that:

  (a)   started at the beginning of the day by which the underlying liability was due to be paid; and

  (b)   finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

  (i)   the amount of the estimate;

  (ii)   general interest charge on any of the amount of the estimate.

Note:   The general interest charge is worked out under Part   IIA of this Act.

268 - 80   Effect of paying the general interest charge

Scope

  (1)   If you are liable to pay the * general interest charge under section   268 - 75 in relation to the estimate, this section applies to the following liabilities:

  (a)   your liability to pay the general interest charge;

  (b)   a liability of yours to pay a general interest charge, under a corresponding provision of Subdivision   16 - B, because the underlying liability remains undischarged;

  (c)   liability under a judgment, to the extent that it is based on a liability referred to in paragraph   (a) or (b);

  (d)   a liability of yours to pay interest carried by a judgment debt, to the extent that the judgment debt is based on:

  (i)   the liability to pay the estimate; or

  (ii)   the liability to pay the general interest charge under section   268 - 75 on an unpaid amount of the estimate.

Discharging one liability discharges other liabilities

  (2)   If, at a particular time, an amount is paid or applied towards discharging one of the liabilities, each of the other liabilities that is in existence at that time is discharged to the extent of the same amount.

  (3)   However, this section does not discharge a liability to a greater extent than the amount of the liability.

  (4)   If, because a judgment debt carries interest, section   8AAH of this Act reduces the amount of a * general interest charge payable as mentioned in paragraph   (1)(b) of this section, the amount of the reduction is taken, for the purposes of subsection   (2) of this section, to have been applied towards discharging your liability to the charge.

Subdivision   268 - F -- Miscellaneous

Table of sections

268 - 85   Effect of judgment on liability on which it is based

268 - 90   Requirements for statutory declaration or affidavit

268 - 95   Liquidators, receivers and trustees in bankruptcy

268 - 100   Division not to limit or exclude Corporations or Bankruptcy Act

268 - 85   Effect of judgment on liability on which it is based

Estimate payable despite judgment

  (1)   The unpaid amount of the estimate, or of the underlying liability, does not stop being payable merely because a judgment has been given by, or entered in, a court.

Division applies to liability under judgment

  (2)   This Division applies in relation to liability under a judgment, to the extent that it is based on your liability to pay the amount of the estimate, in the same way as this Division applies to that estimate liability.

  (3)   This Division applies in relation to liability under a judgment, to the extent that it is based on the underlying liability, in the same way as this Division applies to the underlying liability.

  (4)   Subsections   (2) and (3) do not apply for the purposes of the following:

  (a)   section   268 - 20 (Nature of liability to pay estimate);

  (b)   section   268 - 30 (Estimate provable in bankruptcy or winding up);

  (c)   section   268 - 45 (rejection of proof of debt).

Judgment conclusive as to amount of liability

  (5)   Nothing in this Division affects the conclusiveness of a judgment as to the amount of a liability on which it is based.

268 - 90   Requirements for statutory declaration or affidavit

Scope

  (1)   This section applies to a statutory declaration given, or an affidavit filed, for the purposes of section   268 - 40 or 268 - 45 in relation to the estimate.

Content

  (2)   The statutory declaration or affidavit must verify the following facts:

  (a)   whichever of the following are applicable:

  (i)   the sum of all amounts you withheld under Division   12 during the relevant period, or the fact that you did not withhold any such amounts during the period;

  (ii)   the sum of all amounts you were required to pay under Division   13 (Alienated personal services payments) during the relevant period, or the fact that you were not required to pay any such amounts during the period;

  (iii)   the sum of all amounts you were required to pay under Division   14 (non - cash benefits and accruing gains) during the relevant period, or the fact that you were not required to pay any such amounts during the period;

  (b)   what has been done to comply with Division   16 (Payer's obligations and rights) in relation to the amounts referred to in paragraph   (a).

Maker or deponent

  (3)   The statutory declaration or affidavit must be made, sworn or affirmed by:

  (a)   an individual specified in the following table; or

  (b)   your liquidator, receiver or trustee in bankruptcy (if and as applicable).

  (4)   If the entity specified in the table in subsection   (3) is not an individual, the table is taken to specify the individual who, under that subsection, would be eligible to make a statutory declaration in relation to an estimate of a liability of that entity.

268 - 95   Liquidators, receivers and trustees in bankruptcy

Scope

  (1)   This section applies to an entity (your supervising entity ), in relation to you, if:

  (a)   the entity is your liquidator, receiver, trustee in bankruptcy or administrator, or the administrator of a deed of company arrangement executed by you; or

  (b)   your property is vested in the entity, or the entity has control of your property.

  (2)   For the purposes of this Division, this section applies to an entity in relation to a partnership if it applies to the entity in relation to a partner of the partnership.

Notices from the Commissioner

  (3)   For the purposes of this Division, a notice given by the Commissioner to your supervising entity is taken to have been given to you.

  (4)   You must give your supervising entity a copy of any notice given to you by the Commissioner under this Division. You must do so as soon as practicable, and in any event within 7 days, after:

  (a)   if the Commissioner gave you the notice before the day when your property vested in, or control of your property passed to, the supervising entity--that day; or

  (b)   if subsection   (2) applies and the Commissioner gave you the notice before the day when the relevant partner's property vested in, or control of the relevant partner's property passed to, the supervising entity--that day; or

  (c)   otherwise--the day when the Commissioner gave you the notice.

  (5)   If the Commissioner gives you and your supervising entity a notice at different times, each notice is taken to have been given at the later of those times.

Action taken by your supervising entity

  (6)   For the purposes of this Division, a statutory declaration given to the Commissioner by your supervising entity is taken to have been given by you.

  (7)   For the purposes of this Division, an affidavit filed by your supervising entity is taken to have been filed by you.

  (8)   For the purposes of item   2 in the table in subsection 268 - 40(1) (recovery proceedings), a procedural step taken by your supervising entity is taken to have been taken by you.

Multiple supervising entities

  (9)   If you have 2 or more supervising entities, anything this Division provides for to be done by or in relation to your supervising entity may be done by or in relation to any of them.

268 - 100   Division not to limit or exclude Corporations or Bankruptcy Act

    This Division is not intended to limit or exclude the operation of Chapter   5 of the Corporations Act 2001 (External administration), or the Bankruptcy Act 1966 , to the extent that Chapter or Act can operate concurrently with this Division.

Note:   Section   268 - 30 and Subdivision   268 - D affect the operation of Chapter   5 of the Corporations Act 2001 and the Bankruptcy Act 1966 .

Division   269 -- Penalties for directors of non - complying companies

Table of Subdivisions

  Guide to Division   269

269 - A   Object and scope

269 - B   Obligations and penalties

269 - C   Discharging liabilities

269 - D   Miscellaneous

Guide to Division   269

269 - 1   What this Division is about

The directors of a company have a duty to ensure that the company either:

Subdivision   269 - A -- Object and scope

Table of sections

269 - 5   Object of Division

269 - 10   Scope of Division

269 - 5   Object of Division

    The object of this Division is to ensure that a company either:

  (a)   meets its obligations under Subdivision   16 - B (obligation to pay withheld amounts to the Commissioner) and Division   268; or

  (b)   goes promptly into voluntary administration under the Corporations Act 2001 or into liquidation.

Note:   The directors' duties are enforced by penalties on the directors. A penalty recovered under this Division is applied towards meeting the company's obligation.

269 - 10   Scope of Division

  (1)   This Division applies as set out in the following table:

Note:   In a case covered by item   2, 3 or 4 of the table, the due day is the same as the initial day.

  (2)   This Division applies in relation to an amount that the company purports to withhold under Division   12, but is not required to withhold, as if the company were required to withhold the amount.

Subdivision   269 - B -- Obligations and penalties

Table of sections

269 - 15   Directors' obligations

269 - 20   Penalty

269 - 25   Notice

269 - 30   Remission of penalty before end of notice period

269 - 35   Defences

269 - 15   Directors' obligations

Directors' obligations

  (1)   The directors (within the meaning of the Corporations Act 2001 ) of the company (from time to time) on or after the initial day must cause the company to comply with its obligation.

  (2)   The directors of the company (from time to time) continue to be under their obligation until:

  (a)   the company complies with its obligation; or

  (b)   an administrator of the company is appointed under section   436A, 436B or 436C of the Corporations Act 2001 ; or

  (c)   the company begins to be wound up (within the meaning of that Act).

Instalment arrangements

  (3)   The Commissioner must not commence, or take a procedural step as a party to, proceedings to enforce an obligation, or to recover a penalty, of a director under this Division if an * arrangement that covers the company's obligation is in force under section   255 - 15 (Commissioner's power to permit payments by instalments).

Note 1:   The arrangement may also cover other obligations of the company.

Note 2:   Subsection   (3) does not prevent the Commissioner from giving a director a notice about a penalty under section   269 - 25.

269 - 20   Penalty

Penalty for director on or before due day

  (1)   You are liable to pay to the Commissioner a penalty if:

  (a)   at the end of the due day, the directors of the company are still under an obligation under section   269 - 15; and

  (b)   you were under that obligation at or before that time (because you were a director).

Note:   Paragraph   (1)(b) applies even if you stopped being a director before the end of the due day: see subsection 269 - 15(2).

  (2)   The penalty is due and payable at the end of the due day.

Note:   The Commissioner must not commence proceedings to recover the penalty until the end of 21 days after the Commissioner gives you notice of the penalty under section   269 - 25.

Penalty for new director

  (3)   You are also liable to pay to the Commissioner a penalty if:

  (a)   after the due day, you became a director of the company and began to be under an obligation under section   269 - 15; and

  (b)   14 days later, you are still under that obligation.

  (4)   The penalty is due and payable at the end of that 14th day.

Note:   The Commissioner must not commence proceedings to recover the penalty until the end of 21 days after the Commissioner gives you notice of the penalty under section   269 - 25.

Amount of penalty

  (5)   The amount of a penalty under this section is equal to the unpaid amount of the company's liability under its obligation.

Note 1:   See section   269 - 40 for the effect on your penalty of the company discharging its obligation, or of another director paying his or her penalty.

Note 2:   See section   269 - 45 for your rights of indemnity and contribution.

269 - 25   Notice

Commissioner must give notice of penalty

  (1)   The Commissioner must not commence proceedings to recover from you a penalty payable under this Subdivision until the end of 21 days after the Commissioner gives you a written notice under this section.

Content of notice

  (2)   The notice must:

  (a)   set out what the Commissioner thinks is the unpaid amount of the company's liability under its obligation; and

  (b)   state that you are liable to pay to the Commissioner, by way of penalty, an amount equal to that unpaid amount because of an obligation you have or had under this Division; and

  (c)   explain the main circumstances in which the penalty will be remitted.

  (3)   To avoid doubt, a single notice may relate to 2 or more penalties, but must comply with subsection   (2) in relation to each of them.

When notice is given

  (4)   Despite section   29 of the Acts Interpretation Act 1901 , a notice under subsection   (1) is taken to be given at the time the Commissioner leaves or posts it.

Note 1:   Section   28A of the Acts Interpretation Act 1901 may be relevant to giving a notice under subsection   (1).

Note 2:   Section   269 - 50 of this Act is also relevant to giving a notice under subsection   (1).

269 - 30   Remission of penalty before end of notice period

    A penalty of yours under this Division is remitted if the directors of the company stop being under the relevant obligation under section   269 - 15:

  (a)   before the Commissioner gives you notice of the penalty under section   269 - 25; or

  (b)   within 21 days after the Commissioner gives you notice of the penalty under that section.

269 - 35   Defences

Scope

  (1)   This section applies in relation to:

  (a)   proceedings to recover from you a penalty payable under this Division; or

  (b)   proceedings against you in relation to a right referred to in paragraph 269 - 45(2)(b) (directors jointly and severally liable as guarantors).

Illness

  (2)   It is a defence in the proceedings if it is proved that, because of illness or for some other good reason, it would have been unreasonable to expect you to take part, and you did not take part, in the management of the company at any time when:

  (a)   you were a director of the company; and

  (b)   the directors were under the relevant obligations under section   269 - 15.

All reasonable steps

  (3)   It is a defence in the proceedings if it is proved that:

  (a)   you took all reasonable steps to ensure that the directors complied with their relevant obligations under section   269 - 15; or

  (b)   there were no such steps that you could have taken.

  (4)   In determining what are reasonable steps for the purposes of subsection   (3), have regard to:

  (a)   when, and for how long, you were a director and took part in the management of the company; and

  (b)   all other relevant circumstances.

Power of courts to grant relief

  (5)   Section   1318 of the Corporations Act 2001 does not apply to an obligation or liability of a director under this Division.

Subdivision   269 - C -- Discharging liabilities

Table of sections

269 - 40   Effect of director paying penalty or company discharging liability

269 - 45   Directors' rights of indemnity and contribution

269 - 40   Effect of director paying penalty or company discharging liability

Liabilities

  (1)   This section applies to the following liabilities:

  (a)   the liability of the company under its obligation referred to in section   269 - 10;

  (b)   the liability of each director (or former director) to pay a penalty under this Division in relation to the liability of the company referred to in paragraph   (a);

  (c)   a liability under a judgment, to the extent that it is based on a liability referred to in paragraph   (a) or (b).

Discharging one liability discharges other liabilities

  (2)   If an amount is paid or applied at a particular time towards discharging one of the liabilities, each of the other liabilities in existence at that time is discharged to the extent of the same amount.

  (3)   If, because of section   268 - 20 (Nature of liability to pay estimate), one of the liabilities is discharged at a particular time to the extent of a particular amount, each of the other liabilities in existence at that time is discharged to the extent of the same amount.

  (4)   This section does not discharge a liability to a greater extent than the amount of the liability.

269 - 45   Directors' rights of indemnity and contribution

  (1)   This section applies if you pay a penalty under this Division in relation to a liability of the company under an obligation referred to in section   269 - 10.

  (2)   You have the same rights (whether by way of indemnity, subrogation, contribution or otherwise) against the company or anyone else as if:

  (a)   you made the payment under a guarantee of the liability of the company; and

  (b)   under the guarantee you and every other person who has paid, or from whom the Commissioner is entitled to recover, a penalty under this Division in relation to the company's obligation were jointly and severally liable as guarantors.

Subdivision   269 - D -- Miscellaneous

Table of sections

269 - 50   How notice may be given

269 - 55   Division not to limit or exclude Corporations Act

269 - 50   How notice may be given

    The Commissioner may give you a notice under section   269 - 25 by leaving it at, or posting it to, an address that appears, from information held by the Australian Securities and Investments Commission, to be, or to have been within the last 7 days, your place of residence or * business.

269 - 55   Division not to limit or exclude Corporations Act

    To avoid doubt, this Division is not intended to limit or exclude the operation of Chapter   5 of the Corporations Act 2001 (External administration), to the extent that Chapter can operate concurrently with this Division.

Part   2 -- Consequential amendments

Administrative Decisions (Judicial Review) Act 1977

11   Paragraph   (ea) of Schedule   1

Repeal the paragraph.

12   After paragraph   (ga) of Schedule   1

Insert:

  (gaa)   decisions of the Commissioner of Taxation under Subdivision   268 - B or section   268 - 35 in Schedule   1 to the Taxation Administration Act 1953 ;

Note:   Subdivision   268 - B and section   268 - 35 empower the Commissioner to make, reduce and revoke estimates of certain liabilities.

Corporations Act 2001

13   Subsection 443BA(2) (definition of unpaid amount )

Repeal the definition.

Higher Education Support Act 2003

14   Paragraph 154 - 60(a)

Omit ", and Division   1 of Part   VI,".

15   After paragraph 154 - 60(a)

Insert:

  (aa)   Division   5 of the Income Tax Assessment Act 1997 ; and

16   Section   154 - 60 (note)

Repeal the note.

Income Tax Assessment Act 1936

17   Subsection 102AAM(14)

Repeal the subsection.

18   At the end of Subdivision B of Division   6AAA of Part   III

Add:

102AAN   Collection etc. of interest

    Sections   170, 172, 174, 254 and 255 of this Act, and Division   5 of the Income Tax Assessment Act 1997 (How to work out when to pay your income tax), apply to interest payable under section   102AAM in the same way as they apply to income tax.

19   Subsection 159GZZZZH(4)

Omit "204,".

20   Subsection 159GZZZZH(4)

After "former sections", insert "204,".

21   At the end of section   159GZZZZH

Add:

  (5)   Division   5 of the Income Tax Assessment Act 1997 (How to work out when to pay your income tax) applies to tax payable under this section in the same way as that Division applies to income tax.

22   Subsection 163B(8)

Repeal the subsection, substitute:

Collection etc. of additional tax

  (8)   Former sections   204, 205, 206, 215, 216, 258 and 259, and sections   254 and 255, apply to additional tax payable under this section in the same way as they apply to income tax.

23   Subsection 163B(10) (definition of instalment taxpayer )

Before "Division   1C", insert "former".

24   Subsection 163B(10) (definition of relevant entity )

Before "Division   1B", insert "former".

25   Subsection 254(2)

Repeal the subsection, substitute:

  (2)   Subsection   (1) applies to the following in the same way as it applies to tax:

  (a)   the general interest charge under:

  (i)   section   163AA, former section   170AA, former subsection 204(3), former subsection 221AZMAA(1), former subsection 221AZP(1), former subsection 221YD(3) or former section   221YDB of this Act;

  (ii)   section   5 - 15 of the Income Tax Assessment Act 1997 ;

  (b)   additional tax under former Part   VII of this Act;

  (c)   shortfall interest charge.

Note 1:   The general interest charge is worked out under Part   IIA of the Taxation Administration Act 1953 and shortfall interest charge is worked out under Division   280 in Schedule   1 to that Act.

Note 2:   Subsection 8AAB(4) of that Act lists the provisions that apply the general interest charge.

26   Subsection 255(4)

Repeal the subsection, substitute:

  (4)   This section applies to the following in the same way as it applies to tax:

  (a)   the general interest charge under:

  (i)   section   163AA, former section   170AA, former subsection 204(3), former subsection 221AZMAA(1), former subsection 221AZP(1), former subsection 221YD(3) or former section   221YDB of this Act;

  (ii)   section   5 - 15 of the Income Tax Assessment Act 1997 ;

  (b)   additional tax under former Part   VII of this Act;

  (c)   shortfall interest charge.

Note 1:   The general interest charge is worked out under Part   IIA of the Taxation Administration Act 1953 and shortfall interest charge is worked out under Division   280 in Schedule   1 to that Act.

Note 2:   Subsection 8AAB(4) of that Act lists the provisions that apply the general interest charge.

Income Tax Assessment Act 1997

27   Subsection 3 - 5(3) (note to question 3)

Omit "sections   204, 213 and 219 of the Income Tax Assessment Act 1936 ", substitute "Division   5 of this Act".

28   Sections   214 - 165 and 292 - 400

Repeal the sections.

29   Subsection 721 - 10(2) (table item   5)

Repeal the item, substitute:

30   Subsection 721 - 10(2) (table item   25)

Repeal the item.

31   At the end of subsection 721 - 10(2)

Add:

Note:   The other amounts referred to in item   3 of the table are:

(a)   interest payable under section   102AAM of the Income Tax Assessment Act 1936 (distributions from certain non - resident trust estates); and

(b)   tax payable under section   159GZZZZH of that Act (Tax payable where infrastructure borrowing certificate cancelled).

32   Subsection 995 - 1(1) (definition of full self - assessment taxpayer )

Repeal the definition.

Income Tax (Transitional Provisions) Act 1997

33   Section   214 - 115

Repeal the section.

Social Security Act 1991

34   Section   1061ZZFG

Omit ", and section   204, of the Income Tax Assessment Act 1936 ,", substitute "of the Income Tax Assessment Act 1936 , Division   5 of the Income Tax Assessment Act 1997 ,".

Student Assistance Act 1973

35   Section   12ZN

Omit "and section   204 of the Income Tax Assessment Act 1936 ", substitute "of the Income Tax Assessment Act 1936 , Division   5 of the Income Tax Assessment Act 1997 ".

Taxation Administration Act 1953

36   Section   8AAA

Omit "(Most of the provisions are in the Income Tax Assessment Act 1936 .)".

37   Subsection 8AAB(4) (table items   9 and 30)

Repeal the items.

38   Subsection 8AAB(5) (after table item   2)

Insert:

39   Subsection 8AAB(5) (after table item   17L)

Insert:

40   Paragraph 45 - 130(1)(b) in Schedule   1

Omit " * full self - assessment taxpayer", substitute " * self - assessment entity".

41   Subparagraph 45 - 130(1)(c)(i) in Schedule   1

Omit " * full self - assessment taxpayer", substitute "self - assessment entity".

42   Subsection 250 - 5(2) in Schedule   1 (example)

Omit "Division   1 of Part   VI of the Income Tax Assessment Act 1936 ", substitute "Division   5 of the Income Tax Assessment Act 1997 ".

43   Subsection 250 - 10(1) in Schedule   1 (table items   55 and 65 to 85)

Repeal the items.

44   Subsection 250 - 10(1) in Schedule   1 (at the end of the table)

Add:

45   Subsection 250 - 10(2) in Schedule   1 (after table item   36)

Insert:

46   Subsection 250 - 10(2) in Schedule   1 (after table item   137)

Insert:

47   Subsection 255 - 10(1) in Schedule   1 (note)

Omit "paragraph 204(3)(a) of the Income Tax Assessment Act 1936 ", substitute "paragraph 5 - 15(a) of the Income Tax Assessment Act 1997 ".

48   Subsection 255 - 20(1) in Schedule   1 (note)

Omit "paragraph 204(3)(a) of the Income Tax Assessment Act 1936 ", substitute "paragraph 5 - 15(a) of the Income Tax Assessment Act 1997 ".

49   Subsection 280 - 100(3) in Schedule   1 (note)

Omit "section   204 of the Income Tax Assessment Act 1936 ", substitute "Division   5 of the Income Tax Assessment Act 1997 ".

50   Subsection 280 - 100(3) in Schedule   1 (note)

Omit "That section", substitute "That Division".

51   Subsection 340 - 10(2) in Schedule   1 (table item   3)

Before "subsection 204(3)", insert "former".

52   Subsection 340 - 10(2) in Schedule   1 (after paragraph   (a) in the cell at table item   3, column headed "Provision(s)")

Insert:

(aa) section   5 - 15 in the Income Tax Assessment Act 1997 ; or

Part   3 -- Application, transitional and saving provisions

Division   1--Preliminary

53   Meaning of commencement time

In this Part:

commencement time means the time this item commences.

Division   2--Division   5 of the Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

54   After Division   4

Insert:

Division   5 -- How to work out when to pay your income tax

Table of Subdivisions

5 - A   How to work out when to pay your income tax

Subdivision   5 - A -- How to work out when to pay your income tax

Table of sections

5 - 5   Application of Division   5 of the Income Tax Assessment Act 1997

5 - 7   References in tax sharing agreements to former section   204

5 - 10   General interest charge

5 - 5   Application of Division   5 of the Income Tax Assessment Act 1997

    Division   5 of the Income Tax Assessment Act 1997 , as originally enacted, applies in relation to income tax or shortfall interest charge you must pay for:

  (a)   the 2010 - 11 financial year; or

  (b)   a later financial year.

5 - 7   References in tax sharing agreements to former section   204

  (1)   A reference in an agreement to section   204 of the Income Tax Assessment Act 1936 is taken, from the commencement of this section, to be a reference to section   5 - 5 of the Income Tax Assessment Act 1997 , if:

  (a)   paragraph 721 - 25(1)(a) of the Income Tax Assessment Act 1997 applies to the agreement; and

  (b)   the agreement was in force just before the commencement of this section.

  (2)   This section applies in relation to tax to which Division   5 of the Income Tax Assessment Act 1997 applies.

5 - 10   General interest charge

  (1)   This section applies if, just before the commencement of this section, you were liable, under subsection 204(3) (the old provision ) of the Income Tax Assessment Act 1936 , to pay the general interest charge on an unpaid amount (the liability ) of any tax or shortfall interest charge.

  (2)   On that commencement, the old provision ceases to apply to the liability.

  (3)   From that commencement, section   5 - 15 (the new provision ) of the Income Tax Assessment Act 1997 , as originally enacted, applies to the liability as if:

  (a)   the liability remained unpaid at that time; and

  (b)   so much of the charge under the old provision as remained unpaid at that time had been imposed under the new provision and remained unpaid at that time.

55   At the end of Part   3 - 90

Add:

Division   721 -- Liability for payment of tax where head company fails to pay on time

Table of Subdivisions

721 - A   Application of Division

Subdivision   721 - A -- Application of Division

Table of sections

721 - 25   References in tax sharing agreements to former table item   25

721 - 25   References in tax sharing agreements to former table item   25

  (1)   A reference in an agreement to item   25 of the table in subsection 721 - 10(2) of the Income Tax Assessment Act 1997 is taken, from the commencement of this section, to be a reference to item   3 of that table, if:

  (a)   paragraph 721 - 25(1)(a) of that Act applies to the agreement; and

  (b)   the agreement was in force just before the commencement of this section.

  (2)   This section applies in relation to tax to which Division   5 of the Income Tax Assessment Act 1997 applies.

56   Transitional provision

Despite the repeal of section   204 of the Income Tax Assessment Act 1936 by this Schedule, that section (other than subsection 204(3)) continues to apply, from the commencement time, to income tax or shortfall interest charge to which Division   5 of the Income Tax Assessment Act 1997 , as inserted by this Schedule, does not apply.

Division   3--Security deposits

57   Security deposits

If, just before the commencement time, a security requirement is in force under section   213 of the Income Tax Assessment Act 1936 , the requirement has effect, from the commencement time, as if it had been made under section   255 - 100 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule.

Division   4--Estimates

58   Estimates

New estimate

(1)   Section   268 - 10 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies in relation to an amount you became liable to pay to the Commissioner under section   16 - 70 in Schedule   1 to that Act before, on or after the commencement time.

Existing estimate

(2)   Subitem   (3) applies to an estimate that:

  (a)   was made under section   222AGA of the Income Tax Assessment Act 1936 (whether or not notice of it has been sent to you or your trustee); and

  (b)   was in force just before the commencement time.

(3)   The estimate remains in force, from the commencement time, as if it had been made under section   268 - 10 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule.

59   Bankruptcy or winding up

Section   268 - 30 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies whether the date of the bankruptcy, or the relevant date, referred to in that section occurred before, on or after the day on which the commencement time occurred.

60   Reducing and revoking estimates

(1)   Section   268 - 40 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies in relation to:

  (a)   a notice given by the Commissioner before, on or after the commencement time; or

  (b)   proceedings that relate to the recovery of the unpaid amount of an estimate commenced before, on or after the commencement time; or

  (c)   an application made under section   234, 459P, 462 or 464 of the Corporations Act 2001 before, on or after the commencement time.

(2)   Section   268 - 45 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies in relation to a proof of debt lodged before, on or after the commencement time.

61   General interest charge

New charge

(1)   Section   268 - 75 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies in relation to an estimate of which the Commissioner sends notice:

  (a)   on or after the commencement time; or

  (b)   no more than 7 days before the commencement time.

Existing charge

(2)   Subitems   (3) and (4) apply if, just before the commencement time, you were liable, under Subdivision E of Division   8 of Part   VI of the Income Tax Assessment Act 1936 (the old Subdivision ), to pay the general interest charge on an unpaid amount of an estimate.

(3)   At the commencement time, the old Subdivision stops applying to the liability.

(4)   From the commencement time, Subdivision   268 - E in Schedule   1 to the Taxation Administration Act 1953 (the new Subdivision ) applies to the liability as if:

  (a)   the liability remained unpaid at the commencement time; and

  (b)   so much of the charge under the old Subdivision as remained unpaid at that time:

  (i)   had been imposed under the new Subdivision; and

  (ii)   remained unpaid at that time.

62   Payment agreements

(1)   This item applies in relation to an agreement that:

  (a)   was made under section   222ALA of the Income Tax Assessment Act 1936 ; and

  (b)   was in force just before the commencement time.

(2)   The agreement has effect, from the commencement time, as if the agreement were an arrangement made under section   255 - 15 in Schedule   1 to the Taxation Administration Act 1953 .

63   Savings--regulations relating to government bodies

(1)   This item applies in relation to regulations:

  (a)   made for the purposes of paragraph 222AGF(7)(c), 222AHE(5)(c) or 222AIH(4)(c) of the Income Tax Assessment Act 1936 ; and

  (b)   in force just before the commencement time.

(2)   The regulations have effect from the commencement time as if they had been made for the purposes of paragraph   (b) of item   2, and item   3, of the table in subsection 268 - 90(3) in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule.

Division   5--Directors' obligations

64   Application--Division   269 in Schedule   1 to the Taxation Administration Act 1953

Subject to item   65, Division   269 in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, applies in relation to an amount payable by a company to the Commissioner before, on or after the commencement time.

65   Transitional--penalties

No doubling - up of penalties

(1)   Subsection 269 - 20(1) in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, does not apply if the due day referred to in that subsection occurs before the commencement time.

(2)   Subsection 269 - 20(3) in Schedule   1 to that Act, as added by this Schedule, does not apply if the 14th day referred to in that subsection occurs before the commencement time.

New provisions apply to existing penalties

(3)   Subitem   (4) applies in relation to a penalty that, just before the commencement time, was payable under Division   9 of Part   VI of the Income Tax Assessment Act 1936 .

(4)   Division   269 in Schedule   1 to the Taxation Administration Act 1953 (other than section   269 - 20) has effect, from the commencement time, as if the penalty were payable under Subdivision   269 - B in that Schedule.

Penalties remitted because of payment agreement

(5)   Subitem   (6) applies if:

  (a)   a penalty payable by a director of a company was remitted under section   222APF of the Income Tax Assessment Act 1936 because the company made an agreement with the Commissioner as mentioned in paragraph 222APB(1)(b); and

  (b)   on or after the commencement time, the company contravenes the agreement such that the director would have been liable to pay a penalty under section   222AQA if that section had continued to apply.

(6)   Division   269 in Schedule   1 to the Taxation Administration Act 1953 (other than section   269 - 20) has effect, from the commencement time, as if the penalty:

  (a)   had not been remitted; and

  (b)   were payable under Subdivision   269 - B in that Schedule.

Division   6--Provisions relating to former provisions of the Income Tax Assessment Act 1936

66   Inoperative provisions

(1)   This item applies if:

  (a)   just before the commencement time, a person was liable to pay an amount to the Commissioner under:

  (i)   former section   220AAE, 220AAM or 220AAR of the Income Tax Assessment Act 1936 ; or

  (ii)   former subsection 221YHZD(1) or (1A) of that Act; or

  (iii)   former subsection 221YN(1) of that Act; or

  (b)   the Commissioner has reason to suspect that, just before the commencement time, a person was so liable.

(2)   Despite the repeal of Divisions   8 and 9 of Part   VI of the Income Tax Assessment Act 1936 by this Schedule, but subject to item   62 of this Schedule, those Divisions continue to apply, after the commencement time, in relation to the liability or suspected liability, as if the repeal had not happened.

(3)   Subsection 268 - 90(2) in Schedule   1 to the Taxation Administration Act 1953 , as added by this Schedule, is taken to require a statutory declaration or affidavit to which that subsection applies to verify any facts:

  (a)   that relate to the liability, or suspected liability; and

  (b)   that the declaration or affidavit would have been required to verify if subsection 222AHE(4), 222AID(4) or 222AIH(3) of the Income Tax Assessment Act 1936 , as in force just before the commencement time, had applied to the declaration or affidavit.