Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 93

93. (1) Subject to this section, if any tax remains unpaid after the time when
it became due and payable, or would, but for section 92, have become due and
payable, additional tax is due and payable by way of penalty by the person
liable to pay the tax at the rate of 20% per annum on the amount unpaid,
computed from that time or, where, under section 92, the Commissioner has
granted an extension of time for payment of the tax or has permitted payment
of the tax to be made by instalments, from such date as the Commissioner
determines, not being a date before the date on which the tax was originally
due and payable.

(2) Where-

   (a)  the Commissioner amends an assessment (in this sub-section referred to
as the "former assessment") in relation to an employer in relation to a year
of tax;

   (b)  the tax payable under the amended assessment exceeds the tax payable
        under the former assessment; and

   (c)  the whole or a part (which whole or part is in this sub-section
referred to as the "non-penalised amount") of the excess referred to in
paragraph (b) relates to a matter in respect of which the employer is not
liable (otherwise than by reason of the operation of sub-section 8ze (1) of
the Taxation Administration Act 1953 or sub-section 117 (3) of this Act) to
pay additional tax under Part VIII (other than section 114) of this Act, the
additional tax under sub-section (1), insofar as it-

   (d)  would relate to so much of the unpaid amount referred to in
        sub-section (1) as is attributable to the non-penalised amount; and

   (e)  would be calculated in respect of the period-

        (i)    commencing on-

                (A)  the day on which tax would, but for section 92, have
                     become due and payable by the employer in respect of the
                     year of tax; or

                (B)  the original assessment date,
whichever is the later; and

        (ii)   ending on the thirtieth day after the day on which the amended
               assessment was made, shall be calculated as if the reference in
               sub-section (1) to 20% per annum were a reference to such rate
               of interest as is, or such rates of interest as are, applicable
               under regulations made for the purposes of paragraph 10 (1) (b)
               of the Taxation (Interest on Overpayments) Act 1983.

(3) Until regulations are made for the purposes of paragraph 10 (1) (b) of the
Taxation (Interest on Overpayments) Act 1983, the rate of interest applicable
for the purposes of sub-section (2) is 14.026% per annum.

(4) Where additional tax is due and payable by a person under this section in
relation to an amount of tax and-

   (a)  the Commissioner is satisfied that-

        (i)    the circumstances that contributed to the delay in payment of
               the tax were not due to, or caused directly or indirectly by,
               an act or omission of the person; and

        (ii)   the person has taken reasonable action to mitigate, or mitigate
               the effects of, those circumstances;

   (b)  the Commissioner is satisfied that-

        (i)    the circumstances that contributed to the delay in payment of
               the tax were due to, or caused directly or indirectly by, an
               act or omission of the person;

        (ii)   the person has taken reasonable action to mitigate, or mitigate
               the effects of, those circumstances; and

        (iii)  having regard to the nature of those circumstances, it would be
               fair and reasonable to remit the additional tax or part of the
               additional tax; or

   (c)  the Commissioner is satisfied that there are special circumstances by
        reason of which it would be fair and reasonable to remit the
        additional tax or part of the additional tax, the Commissioner may
        remit the additional tax or part of the additional tax.

(5) Where judgment is given by, or entered in, a court for payment of-

   (a)  an amount of tax; or

   (b)  an amount that includes an amount of tax, then-

   (c)  the tax shall not be taken, for the purposes of sub-section (1), to
        have ceased to be due and payable by reason only of the giving or
        entering of the judgment; and

   (d)  if the judgment debt carries interest, the additional tax that would,
        but for this paragraph, be payable under this section in relation to
        the tax shall, by force of this paragraph, be reduced by-

        (i)    in a case to which paragraph (a) applies-the amount of the
               interest; or

        (ii)   in a case to which paragraph (b) applies-an amount that bears
               the same proportion to the amount of the interest as the amount
               of the tax bears to the amount of the judgment debt.

(6) In this section, unless the contrary intention appears, "tax" includes
additional tax under Part VIII.