Interest
17J Interest
If—
a default to which this Subdivision applies occurs; or
a person fails to pay, in accordance with this Act, the whole or part of a penalty levy payable in respect of a default to which this
Subdivision applies, the person in default is liable to pay interest on the amount of the levy or penalty levy unpaid at the interest rate from time to time applying under this section.
Interest is not payable under subsection (1) in respect of a failure to pay interest under this section.
Subject to subsection (4), interest accrues on a daily basis—
on the amount of a levy unpaid—from the date stated for payment of the levy in the notice under section 16;
and
on the amount of a penalty levy unpaid—from the date stated for payment of the penalty levy in the notice under section 17M.
If the amount of interest payable for the time being would, apart from this subsection, be less than $20, no interest is payable.
If judgment is given by or entered in a court for an amount that represents or includes the whole or part of an unpaid levy or an unpaid penalty levy, the interest rate applying under this section continues to apply in relation to the amount of the levy or penalty levy unpaid, while it remains unpaid, to the exclusion of any other interest rate.
The
Commissioner may, at the Commissioner's discretion, remit interest otherwise payable by any amount.
A decision under subsection (6) is a non‑reviewable decision.
The interest rate that applies under this section is the sum of—
the market rate (within the meaning of section 26 of the Taxation
Administration Act 1996);
and
8% per annum.
This Act’s bill:Second reading speech
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