Section 172A — Income Tax Assessment Act 1936: Consequences of amendment of assessments of tax offset refunds

Amendment increases total of tax offset refunds (1) If, by reason of an amendment of an assessment, the total of a person’s tax offset refunds is increased, the Commissioner must apply the amount of the increase in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953. Note: Interest on the amount of the increase may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983. Amendment reduces total of tax offset refunds (2) If: (a) by reason of an amendment of an assessment, the total of a person’s tax offset refunds is reduced; and (b) as a result, an amount applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 before the amendment was excessive; the person is liable to pay to the Commonwealth the amount of the excess. The amount is due 21 days after the Commissioner gives the person notice of the amended assessment. Note: For provisions about collection and recovery of the amount, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953. Shortfall interest charge (2A) If: (a) a person is liable to pay an amount under subsection (2); and (b) as a result, the person is liable to pay shortfall interest charge on that amount under section 280-102F in Schedule 1 to the Taxation Administration Act 1953; then the shortfall interest charge is due and payable 21 days after the day on which the Commissioner gives the person notice of the charge. Note: Shortfall interest charge is worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953. General interest charge (3) If any of the amount (the overpayment) the person is liable to pay under subsection (2), or any amount of shortfall interest charge on the overpayment, remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the beginning of the day on which the overpayment or shortfall interest charge was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the overpayment or shortfall interest charge; (ii) general interest charge on any of the overpayment or shortfall interest charge. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.