Queensland Consolidated Acts

TAXATION ADMINISTRATION ACT 2001 - SECT 54

54 Unpaid tax interest

(1) A taxpayer must pay interest (
"unpaid tax interest" ) on the amount of primary tax payable by the taxpayer and unpaid from time to time (
"unpaid primary tax" ).

(2) Unpaid tax interest, other than late payment interest, accrues daily at the prescribed rate on the unpaid primary tax for the period starting on the start date and ending on the date the primary tax is paid in full, both dates inclusive.

(3) Late payment interest accrues at the prescribed rate on the unpaid primary tax as follows—

(a) for unpaid primary tax under a royalty law, late payment interest accrues daily from and including the start date;

(b) for unpaid primary tax under a revenue law other than a royalty law, late payment interest accrues—

(i) on the day of the week prescribed by regulation first happening after the start date; and

(ii) weekly after the first accrual under subparagraph (i) .

(4) Any unpaid tax interest that has accrued when an assessment is made (
"assessed interest" ) must be included in the assessment.

(5) For subsections (2) and (3) , the start date is the day after—

(a) for a return self assessment—the date the return is required to be lodged under the revenue law for the self assessment; or

(aa) for a standard self assessment—

(i) the due date for the self assessment; or

(ii) if the self assessor has not complied with one or more lodgement requirements for the self assessment—the date that is the same number of days before the due date for the self assessment as the number of days in the periods of noncompliance with the lodgement requirements; or

(iii) if the liable party has not complied with the Duties Act 2001 , section 471E —the date that is the same number of days before the due date for the self assessment as the number of days in the period of noncompliance with the Duties Act 2001 , section 471E ; or

(iv) if subparagraphs (ii) and (iii) both apply—the date that is the same number of days before the due date for the self assessment as the total number of days of noncompliance; or

(b) for a default assessment of a taxpayer’s liability for tax required or permitted to be made by a self assessment—the date the return or transaction statement is required to be lodged under the revenue law for the self assessment; or

(c) for another original assessment—

(i) the due date for the assessment; or

(ii) if the taxpayer has not complied with 1 or more information or lodgement requirements for the assessment—the date that is the same number of days before the due date for the assessment as the number of days in the periods of noncompliance with the information or lodgement requirements; or

(d) for a reassessment of a self assessment—the date mentioned in paragraph (a) or (aa) for the assessment; or

(e) for a reassessment of another original assessment—the date mentioned in paragraph (b) or (c) for the assessment.

Example for subsection (5)(c)(ii)—

If a taxpayer who is required to comply with a lodgement requirement by 10 March does not comply with the requirement until 15 March, the period of noncompliance under subsection (6) is 5 days. If the due date for the assessment made is 17 April, the start date is 13 April.

(6) For subsection (5) (aa) (ii) , (iii) and (iv) or (c)(ii)—

(a) a period of noncompliance ends on the date the commissioner issues a default assessment for the noncompliance; and

(b) the date on which the requirement is complied with is included in calculating a period of noncompliance.

(7) For a reassessment—

(a) the unpaid primary tax is the amount of the reassessed primary tax that is unpaid; and

(b) any assessed interest included in the reassessment replaces any previously accrued unpaid tax interest.

Example for subsection (7)—

The assessment for the example for subsection (5) (c) (ii) is issued for $10,000 primary tax and before any payment under the original assessment is made. A reassessment is issued on 24 April for $12,000 primary tax.
If the prescribed rate for late payment interest is 10% per year, the late payment interest that has accrued on the $10,000 when the reassessment is made (namely on and from 13 April to and including 24 April) is $32.87. When the reassessment is made, assessed interest is calculated on the $12,000 unpaid reassessed primary tax on and from 13 April to and including 24 April. This replaces the $32.87 interest previously accrued.
If a payment of $10,000 is made on 12 April, the assessed interest for the reassessment would be calculated on the unpaid reassessed primary tax of $2,000 on and from 13 April to and including 24 April.

(8) A reference in this section to an amount of primary tax payable by a taxpayer does not include a reference to an amount of royalty payable under the Mineral Resources Act 1989 to a person other than the State.

(9) Despite subsections (2) and (3) (a) , a regulation under a royalty law may prescribe how unpaid tax interest is worked out in particular cases or classes of cases, including, for example, how the interest is worked out if royalty is, under a regulation under a royalty law, payable in instalments.

(10) In this section—

"liable party" see the Duties Act 2001 , section 471A .

"total number of days of noncompliance" means the total number of days worked out by adding the number of days in the period of noncompliance in subsection (5) (aa) (ii) to the number of days in the period of noncompliance in subsection (5) (aa) (iii) .