Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1984No. 123, 1984 - SECT 129

129. Section 221N of the Principal Act is repealed and the following sections
are substituted: Remission of certain amounts

"221N. (1) Where an amount (in this section referred to as the 'late payment
penalty') is payable by an employer by virtue of paragraph 221EAA (1) (b),
sub-paragraph 221F (12) (b) (i), sub-sub-paragraph 221F (12) (b) (ii) (B),
paragraph 221G (4A) (c) or sub-paragraph 221G (4A) (d) (ii) in relation to
another amount (in this sub-section referred to as the 'principal amount')
that has not been paid and-

   (a)  the Commissioner is satisfied that-

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

        (ii)   the employer 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 principal amount were due to, or caused directly or
               indirectly by, an act or omission of the employer;

        (ii)   the employer 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 late payment penalty or part
               of the late payment penalty; or

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

"(2) The Commissioner may remit the whole or part of any amount payable by an
employer by virtue of paragraph 221EAA (1) (a), sub-section 221EAA (2),
sub-sub-paragraph 221F (12) (b) (ii) (A) or sub-paragraph 221G (4A) (d) (i).
Reduction of late payment penalty where judgment debt carries interest

"221NA. (1) Where judgment is given by, or entered in, a court for the payment
of-

   (a)  the whole or a part of a principal amount; or

   (b)  an amount that includes the whole or a part of a principal amount,
        then-

   (c)  the principal amount or the part of the principal amount, as the case
        may be, shall not be taken, for the purposes of paragraph 221EAA (1)
        (b), sub-paragraph 221F (12) (b) (i), sub-sub-paragraph 221F (12) (b)
        (ii) (B), paragraph 221G (4A) (c) or sub-paragraph 221G (4A) (d) (ii),
        as the case may be, 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 amount that would, but for
        this paragraph, be payable by virtue of paragraph 221EAA (1) (b),
        sub-paragraph 221F (12) (b) (i), sub-sub-paragraph 221F (12) (b) (ii)
        (B), paragraph 221G (4A) (c) or sub-paragraph 221G (4A) (d) (ii), as
        the case may be, in relation to the principal amount or the part of
        the principal amount, as the case may be, 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
               principal amount or the part of the principal amount, as the
               case may be, bears to the amount of the judgment debt.

"(2) In sub-section (1), 'principal amount' means-

   (a)  an amount of the kind referred to in sub-section 221EAA (1) as the
        undeducted amount;

   (b)  an amount of the kind referred to in sub-section 221F (12) as the
        principal amount;

   (c)  an amount of the kind referred to in sub-paragraph 221F (12) (b) (ii)
        as the relevant penalty amount;

   (d)  an amount of the kind referred to in sub-section 221G (4A) as the
        principal amount; or

   (e)  an amount of the kind referred to in paragraph 221G (4A) (d) as the
        relevant penalty amount. Penalties to be alternative to prosecution
        for certain offences

"221NB. (1) Where-

   (a)  but for this sub-section, an amount is payable, by way of penalty, by
        a person to the Commissioner under this Division by reason of an act
        or omission of the person; and

   (b)  a prosecution is instituted against the person for an offence against
        this Division constituted by the act or omission, the amount is not
        payable unless and until the prosecution is withdrawn.

"(2) Where-

   (a)  a person is liable to pay, by way of penalty, an amount (in this
        sub-section referred to as the 'penalty amount') to the Commissioner
        under this Division by reason of an act or omission of the person;

   (b)  an amount (in this sub-section referred to as the 'relevant amount')
        is paid, or applied by the Commissioner, in total or partial discharge
        of the liability; and

   (c)  a prosecution is instituted against the person for an offence against
        this Division constituted by the act or omission, the relevant amount
        shall be refunded to the person or applied by the Commissioner in
        total or partial discharge of a tax liability of the person, but, if
        the prosecution is withdrawn, the person shall again become liable to
        pay the penalty amount.

"(3) In sub-section (2), 'tax liability' means tax liability as defined in
section 2 of the Taxation Administration Act 1953.".