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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 162.175

GST payments are less than 85% of annual GST liability

             (1)  You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if you have a * varied instalment amount for the GST instalment quarter, and:

                     (a)  if the instalment tax period is a * financial year--the sum of your * GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your * annual GST liability for the instalment tax period; or

                     (b)  if the instalment tax period is only part of a financial year--the sum of:

                              (i)  your * GST instalments for all the GST instalment quarters of the instalment tax period; and

                             (ii)  your * early net amounts for the financial year (subtracting any of those amounts that are less than zero);

                            is less than 85% of your annual GST liability for the instalment tax period.

             (2)  The amount of the penalty, for a particular day, is worked out by applying the * general interest charge:

                     (a)  for each day in the period in section 162-190; and

                     (b)  in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953 ;

to your * GST instalment shortfall, under this section, for the * GST instalment quarter.

             (3)  Your GST instalment shortfall , under this section, for the * GST instalment quarter is the amount worked out as follows:

where:

"GST already payable" is the sum of:

                     (a)  the * varied instalment amount; and

                     (b)  all your other * GST instalments (if any) for earlier * GST instalment quarters of the * instalment tax period in question; and

                     (c)  if the instalment tax period is only part of a * financial year--your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).

             (4)  However, if:

                     (a)  the * GST instalment quarter is not the first GST instalment quarter of the * instalment tax period in question; and

                     (b)  you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;

then:

                     (c)  your GST instalment shortfall , under this section, for the * GST instalment quarter is the difference between:

                              (i)  the amount worked out using the formula in subsection (3); and

                             (ii)  the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and

                     (d)  if that sum is greater than the amount worked out using the formula in subsection (3)--you are not liable to pay a penalty under this section in relation to the GST instalment quarter.

             (5)  The appropriate percentage for a * GST instalment quarter is:

                     (a)  if the GST instalment quarter ends on 30 September--25%; or

                     (b)  if the GST instalment quarter ends on 31 December--50%; or

                     (c)  if the GST instalment quarter ends on 31 March--75%; or

                     (d)  if the GST instalment quarter ends on 30 June--100%.



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