Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to sections 11, 11A and 12, where:
(a) an amount of relevant tax is paid by a person to the Commissioner (in this subsection referred to as the amount paid ); and
(b) as a result of a decision to which this Act applies, the whole or a part of the amount paid is overpaid by the person and is refunded to the person or applied against any liability of the person to the Commonwealth;
interest calculated in accordance with subsections (2) and (3) and sections 10 and 10A is payable by the Commissioner to the person in respect of:
(c) in a case where the whole of the amount paid is so refunded or applied--the amount paid; or
(d) in a case where a part of the amount paid is so refunded or applied--the part of the amount paid so refunded or applied.
(1A) If:
(a) apart from this subsection, subsection (1) would apply to an overpayment; and
(b) the decision to which this Act applies mentioned in that subsection was made wholly or partly to provide correlative relief, for juridical double taxation or economic double taxation, in respect of the taxing of an amount under a law of a foreign country; and
(c) either:
(i) the law of the foreign country did not require the payment of late payment interest in respect of the amount; or
(ii) the law of the foreign country did require the payment of late payment interest but the payment had not been made by the time the decision to which this Act applies was made;
subsection (1) does not apply to the overpayment to the extent to which it is attributable to the provision of the correlative relief.
(1B) Subsection (1) does not apply to an overpayment to the extent that the overpayment results from the person providing or receiving a financial benefit (within the meaning of the Income Tax Assessment Act 1997 ) under a look - through earnout right (within the meaning of that Act).
(1C) Subsection (1) does not apply to an overpayment to the extent that the overpayment results from paragraph 417 - 105(a) of the Income Tax Assessment Act 1997 allowing an amount to be deducted from assessable income (within the meaning of that Act) for an earlier year of income.
(2) Where an amount of relevant tax has, whether by agreement or otherwise, been paid by a person to the Commissioner in instalments, each instalment shall, for the purposes of section 10, be treated as a separate amount of relevant tax paid by the person to the Commissioner.
(3) Where:
(a) an amount of relevant tax has, whether by agreement or otherwise, been paid by a person to the Commissioner in instalments; and
(b) as a result of a decision to which this Act applies, a part only of the amount of relevant tax is overpaid by the person and is refunded to the person or applied against any liability of the person to the Commonwealth;
the amount so refunded or applied shall, for the purposes of section 10, be attributed to the instalments in reverse order to the order in which the instalments were paid to the Commissioner.
(4) Where the Commissioner applies an amount that has been paid to him or her by a person against the liability of another person to pay an amount of relevant tax, the other person shall, for the purposes of this Act, be deemed to have paid to the Commissioner, to the extent of the amount so applied and on the day on which the amount is so applied, the amount of relevant tax.
(6) Where:
(a) at a particular time, a company pays an amount of franking deficit tax;
(b) at a later time (in this subsection called the offset time ), the company becomes entitled to a tax offset that is attributable, in whole or in part, to so much of the company's franking deficit tax liability as was discharged by the payment of that amount; and
(c) as a result of a decision to which this Act applies (being a decision made after the offset time), the whole or part of the amount paid by the company is overpaid;
the amount paid by the company shall be taken to have been applied, at the offset time, against a liability of the company to the Commonwealth as a result of that decision.
(7) In subsection (6), franking deficit tax and tax offset have the meanings given by subsection 995 - 1(1) of the Income Tax Assessment Act 1997 .
Liabilities under section 282 - 18 of the Private Health Insurance Act 2007
(8) For the purposes of this section, if:
(a) the Commissioner gives a notice to a person under subsection 282 - 18(4) of the Private Health Insurance Act 2007 ; and
(b) the notice states that the person is liable to pay an amount to the Commonwealth under section 282 - 18 of that Act; and
(c) the person pays the stated amount to the Commissioner; and
(d) the stated amount exceeds the amount the person is liable to pay under that section; and
(e) the excess is refunded to the person or applied against any liability of the person to the Commonwealth;
treat the excess as being overpaid by the person, and so refunded or applied, as a result of the decision of the Commissioner to give the notice.
Note 1: The decision of the Commissioner to give the notice is a decision to which this Act applies. See section 3.
Note 2: Liabilities under section 282 - 18 of the Private Health Insurance Act 2007 are relevant tax. See section 3C.