Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1984No. 123, 1984 - SECT 140

140. After section 221YHL of the Principal Act the following sections are
inserted: Reduction of late payment penalty where judgment debt carries
interest

"221YHLA. (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 221YHH (1)
        (b), sub-paragraph 221YHJ (1) (b) (i) or sub-sub-paragraph 221YHJ (1)
        (b) (ii) (B), as the case requires, 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 221YHH (1) (b),
        sub-paragraph 221YHJ (1) (b) (i) or sub-sub-paragraph 221YHJ (1) (b)
        (ii) (B), 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 221YHH (1) as the
        undeducted amount;

   (b)  an amount of the kind referred to in sub-section 221YHJ (1) as the
        principal amount; or

   (c)  an amount of the kind referred to in sub-paragraph 221YHJ (1) (b) (ii)
        as the relevant penalty amount. Penalties to be alternative to
        prosecution for certain offences

"221YHLB. (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.".