Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1984No. 123, 1984 - SECT 81

81. Section 27 of the Principal Act is repealed and the following section is
substituted: Penalty for unpaid duty

"27. (1) If any gift duty payable in respect of a gift remains unpaid after
the expiration of the period of 30 days after service upon the donor of notice
of the assessment made in respect of the gift, additional gift duty is due and
payable by way of penalty by the person liable to pay the gift duty at the
rate of 20% per annum on the amount unpaid, computed from the expiration of
that period, or, where, under section 26, the Commissioner has granted an
extension of time for payment of the gift duty or has permitted payment of the
gift duty to be made by instalments, from such date as the Commissioner
determines, not being a date prior to the thirtieth day after service of the
notice of assessment upon the donor.

"(2) If any penalty duty remains unpaid after the time when it became due and
payable or would, but for section 26, have become due and payable, additional
gift duty is due and payable by way of penalty by the person liable to pay the
penalty duty at the rate of 20% per annum on the amount unpaid, computed from
that time, or, where, under section 26, the Commissioner has granted an
extension of time for payment of the penalty duty or has permitted payment of
the penalty duty to be made by instalments, from such date as the Commissioner
determines, not being a date prior to the date on which the penalty duty was
originally due and payable.

"(3) Where additional gift duty is payable by a person under this section in
relation to an amount of gift duty and-

   (a)  the Commissioner is satisfied that-

        (i)    the circumstances that contributed to the delay in payment of
               the gift duty 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 gift duty 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 gift duty or part
               of the additional gift duty; 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 gift duty or part of the additional gift duty, the
        Commissioner may remit the additional gift duty or part of the
        additional gift duty.

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

   (a)  an amount of gift duty; or

   (b)  an amount that includes an amount of gift duty, then-

   (c)  the gift duty shall not be taken, for the purposes of sub-sections (1)
        and (2), 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 gift duty that
        would, but for this paragraph, be payable under this section in
        relation to the gift duty 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 gift duty bears to the amount of the judgment debt.

"(5) In sub-sections (3) and (4), unless the contrary intention appears, 'gift
duty' includes penalty duty.

"(6) In this section, 'penalty duty' means additional gift duty under
section 42.".