Queensland Consolidated Acts

TAXATION ADMINISTRATION ACT 2001 - SECT 38

38 Applying amounts to current and future tax liabilities

(1) This section applies if a taxpayer is entitled to a refund of an amount (the
"refund amount" ) under section 37 .

(2) The commissioner may apply the whole or part of the refund amount, and any section 61A interest payable on the refund amount, as payment for any of the following—

(a) any tax law liability of the taxpayer;

(b) any tax law liability of the taxpayer that the commissioner reasonably believes will become payable within 60 days after the entitlement to the refund arises;

(c) for a refund amount that is a royalty amount, and any section 61A interest payable on that amount—any liability of the taxpayer for a royalty amount that the commissioner reasonably believes will become payable on or before the later of the following days—

(i) the day that is 6 months after the entitlement to the refund arises;

(ii) the day an assessment is made for the taxpayer for the next royalty return period to end after the entitlement to the refund arises.

(3) Immediately after the end of the period within which the commissioner may apply the refund amount under subsection (2) , the commissioner must refund or pay to the taxpayer any part of the refund amount and section 61A interest that has not been applied.

(4) However subsections (2) and (3) do not prevent the commissioner from holding the refund amount or section 61A interest for any period, or applying it for any purpose, at the taxpayer’s request or with the taxpayer’s consent.

(5) This section has effect subject to section 39 .

(6) In this section—

"royalty amount" means—

(a) an amount payable by a taxpayer under a royalty law; or

(b) an amount payable by a taxpayer, under this Act, that relates to an amount mentioned in paragraph (a) .

"royalty return period" , for a taxpayer, means a period for which, under a royalty law, the taxpayer must lodge a return.

"section 61A interest" means interest payable on a refund amount by the commissioner to a taxpayer under section 61A .