Qld: Remission of unpaid tax interest – Ruling TAA060.1.6 released – applications must be in writing and relevant factors include: cause for delay, diligence in complying, beyond taxpayer’s control, Commissioner’s fault, etc.

The Qld Treasury has released Ruling TAA060.1.6 dealing with Remission of unpaid tax interest. It provides guidance on matters that may be relevant when the Commissioner decides whether or not to exercise the discretion to remit unpaid tax interest. Unpaid tax interest applies whenever there is a delay in the payment of tax. The delays may result from: (i) failure to pay the tax on time; (ii) actions that defer the making of an assessment and therefore the payment of tax eg non-compliance with a lodgment or information requirement.

Relevant matters for remitting UTI

9. In deciding whether to remit UTI, the Commissioner will consider:
   1. the circumstances that caused the delay in the payment of the relevant taxation liability and the actions taken by the taxpayer to mitigate those circumstances
   2. the actions taken by the taxpayer to inform themselves and comply with their obligations (noting that ignorance of the law and its associated obligations will generally not support remission of UTI)
   3. the extent that the circumstances giving rise to the imposition of UTI were within the control of the taxpayer
   4. whether (and to what extent) the circumstances giving rise to the imposition of UTI were due to an error or unreasonable delay by the Commissioner⁸
   5. whether the remission of UTI in particular circumstances would provide an unfair advantage to the taxpayer over other taxpayers in similar circumstances
   6. whether an extension of time has been granted by the Commissioner for a lodgement or information requirement under Public Ruling1—Circumstances where the Commissioner will extend the date for complying with an information or lodgement requirement
   7. whether the taxpayer has paid tax in error to another state or territory and subsequently remedied this by paying the tax to the Commissioner. Factors considered by the Commissioner when deciding whether to remit UTI on this basis and, if UTI is remitted, the extent of the remission include the following:
      1. the nature of the tax paid incorrectly to the other state or territory
      2. whether the tax was paid to the other state or territory on or before the due date for payment of the liability for tax in Queensland

• whether the tax paid to the other state or territory was equal to the actual liability for tax payable in Queensland

1. any other circumstance where the Commissioner is satisfied that remission of UTI is warranted.

Requests for remission

10. Applications for the remission of UTI should be in writing, with full details of the facts and circumstances. However, the Commissioner can decide to remit UTI in whole or in part when making an assessment or reassessment if there is sufficient information to determine that remission is appropriate (for example, following an investigation).

[Queensland Treasury Website: TAA060.1.6; LTN 72, 19/4/17]