Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 112

112. (1) An employer may, not later than the date on which an instalment of
tax in respect of a standard year of tax is due and payable or within such
further period as the Commissioner allows-

   (a)  make an estimate of the amount of the tax (if any) that will be
        payable by the employer in respect of that year of tax; and

   (b)  furnish to the Commissioner a statement in writing showing-

        (i)    the amount so estimated; and

        (ii)   the basis on which the estimate has been made, unless the
               employer has previously furnished a statement under this
               sub-section in relation to the instalment of tax.

(2) Where an employer furnishes to the Commissioner, in relation to an
instalment of tax, a statement under sub-section (1), the estimated tax is,
subject to sub-section (3), an amount equal to the employer's estimate.

(3) Where, having regard to information in returns furnished by the employer
and any other information in the Commissioner's possession, the Commissioner
has reason to believe that the amount of tax that will be payable by the
employer in respect of the year of tax is greater than the employer's
estimate-

   (a)  the Commissioner may estimate the amount that, in the Commissioner's
        opinion, should have been the amount estimated by the employer
        pursuant to sub-section (1) in respect of that year of tax; and

   (b)  the estimated tax is-

        (i)    an amount equal to the amount of tax so estimated by the
               Commissioner; or

        (ii)   the amount that would be the notional tax amount of the
               employer in respect of the year of tax if the employer had not
               furnished a statement under sub-section (1),
whichever is the less.

(4) Where-

   (a)  an amount payable by an employer as an instalment of tax (in this
sub-section referred to as the "insufficient instalment") in respect of a year
of tax was calculated by reference to the employer's estimate;

   (b)  the notional tax amount is less than 90% of the amount of tax assessed
        to the employer in respect of the year of tax; and

   (c)  the tax referred to in paragraph (b) has become due and payable,
        additional tax, by way of penalty, in respect of the penalty period,
        is due and payable by the employer to the Commissioner at the rate of
        20% per annum on the amount by which the insufficient instalment is
        less than the amount ascertained in accordance with the formula AB-C,
        where-
A is-

   (d)  the amount that, but for sub-section 110 (5), would have been the
        notional tax amount; or

   (e)  the amount of tax referred to in paragraph (b),
whichever is the less;
B is the relevant fraction; and
C is the amount, or the sum of the amounts, of any instalments of tax in
respect of that year of tax that became due and payable before the date on
which the insufficient instalment became due and payable.

(5) Where-

   (a)  but for the operation of sub-section 110 (5), an employer would have
        been liable to pay an instalment of tax in respect of a year of tax;
        and

   (b)  the employer's estimate in relation to the year of tax is nil,
        sub-section (4) applies in relation to the instalment as if a nil
        amount were payable as that instalment of tax.

(6) Where the Commissioner is satisfied that there are special circumstances
by reason of which it would be fair and reasonable to do so, the Commissioner
may remit the whole or any part of the additional tax payable by the employer
under sub-section (4).

(7) In determining for the purposes of this section whether an amount of tax
has become due and payable by an employer and, if an amount of tax has become
due and payable by an employer, the day on which that amount became due and
payable, the operation of section 92 shall be disregarded.