Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 163B

             (1)  If:

                     (a)  a person (other than a relevant entity, an instalment taxpayer or a full self‑assessment taxpayer) is required to furnish a return under section 161, 162 or 163 in relation to a year of income; and

                     (b)  the return is not furnished within:

                              (i)  in the case of section 161--the period specified in the notice under that section or any further period allowed by the Commissioner under that section; or

                             (ii)  in the case of section 162 or 163--the time required by the Commissioner under that section; and

                     (c)  an assessment (other than an amended assessment) is made of the income tax payable by the person for the year of income (whether or not on the basis of a return that is later furnished by the person);

the person is liable to pay the general interest charge on the amount in subsection (2) and the amount of the charge is taken to be additional tax payable under this section.

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

          (1A)  The person is liable to pay the general interest charge for each day in the period that:

                     (a)  started at the beginning of the day by which the return was required to be furnished; and

                     (b)  finishes at the end of the day before the return is furnished, or the day before the Commissioner made the assessment, whichever is earlier.

Amount on which additional tax payable

             (2)  The additional tax is payable on the lesser of:

                     (a)  the amount of income tax payable under the assessment (after allowing any rebate or deduction under subsection 100(2) and before any crediting, applying or other payment); and

                     (b)  the person's net tax payable (see subsection (3)).

Meaning o f net tax payable

             (3)  The person's net tax payable is the amount worked out using the formula:

where:

"Tax liabilities " means the sum of the following amounts (worked out disregarding any payment on account of the amounts):

                     (a)  income tax payable under the assessment (after allowing any rebate or deduction under subsection 100(2) and before allowing any crediting, applying or refunding, notified in the notice of assessment, of an income tax crediting amount);

                     (b)  additional tax for the year of income payable by the person under Part VII immediately before any such crediting, applying or refunding;

                     (c)  interest for the year of income payable by the person under section 102AAM immediately before any such crediting, applying or refunding;

                     (d)  an HEC assessment debt or compulsory repayment amount notified in the notice of assessment;

                     (e)  an FS assessment debt notified in the notice of assessment.

"Crediting amounts and payments on account " means the sum of:

                     (a)  any income tax crediting amounts notified in the notice of assessment; and

                     (b)  any payments made on account of the amounts in paragraphs (a) to (e) of the definition of Tax liabilities .

Income tax or tax includes additional tax

             (8)  Unless the contrary intention appears, in sections 204, 205, 206, 215, 216, 254, 255, 258 and 259, but not in any other section of this Act, a reference to income tax or tax includes a reference to the additional tax.

Minimum amount

             (9)  If less than $20 of additional tax is payable under this section, the additional tax is taken to be $20.

Definitions

           (10)  In this section:

"compulsory repayment amount" has the same meaning as in the Higher Education Support Act 2003 .

"FS assessment debt" means an FS assessment debt under:

                     (a)  subsection 19AB(2) of the Social Security Act 1991 ; or

                     (b)  the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.

"HEC assessment debt" has the same meaning as in Chapter 5A of the Higher Education Funding Act 1988 .

"income tax crediting amount" , in relation to the income tax payable by a person for a year of income, means an amount of a credit applied under Division 3 of Part IIB of the Taxation Administration Act 1953 against the income tax.

"instalment taxpayer " has the same meaning as in Division 1C of Part VI.

"relevant entity " has the same meaning as in Division 1B of Part VI.

           (11)  This section does not apply to a return for the 2000‑01 year of income or a later year of income.

Note:          See instead Division 286 in Schedule 1 to the Taxation Administration Act 1953 .