Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a person is liable to pay the general interest charge under subsection 222AJA(3) in relation to an estimate, the following are parallel liabilities :
(a) the person's liability to the general interest charge;
(b) a liability of the person to pay a general interest charge, under a corresponding provision of Division 1AAA, 3B or 4 of this Part, or Subdivision 16‑B in Schedule 1 to the Taxation Administration Act 1953 , as the case requires, because the underlying liability remained undischarged;
(c) liability under a judgment, so far as it is based on a liability referred to in paragraph (a) or (b);
(d) a liability of the person to pay interest carried by a judgment debt, to the extent that the judgment debt is based on the liability to pay the estimate or on the liability to pay the general interest charge under subsection 222AJA(3) on an unpaid amount of the estimate.
(2) This means that if, at a particular time, an amount is paid or applied towards discharging one of the parallel liabilities, each of the others that is in existence at that time is discharged to the extent of the same amount. However, this section does not discharge a liability to a greater extent than the amount of the liability.
(3) If, because a judgment debt carries interest, section 8AAH of the Taxation Administration Act 1953 reduces the amount of a general interest charge payable as mentioned in paragraph (1)(b), the amount of the reduction is taken for the purposes of subsection (2) to have been applied towards discharging the person's liability to the charge.