Payments and refunds
The Taxation Administration Act 2001 (TAA) specifies how taxpayers may pay a tax liability and the acceptable methods of payment. Additionally, provisions are included to enable the Commissioner to collect tax promptly. In specified circumstances, taxpayers may be entitled to a refund.
Payments
Payments may be made to the Office of State Revenue by cash, money order or cheque. The TAA specifies time periods for the payment of tax and other amounts such as valuation fees. Unpaid tax interest (UTI) is payable as it accrues. The Commissioner may vary the time periods for payment of tax, including reducing the time period (in limited circumstances) or in specified circumstances extending the time period. For example, the Commissioner may allow a tax liability to be paid by instalments.
Refunds
A refund will be paid where:
- a reassessment decreases a taxpayer's tax liability
or
- where there has been an overpayment of tax
Time limits are specified for some refunds.
Instead of refunding an amount, the Commissioner may apply the amount against any outstanding tax liability or hold the amount for a specified period and apply the amount against a tax liability which is expected to arise during that period.
If a person has applied for a refund in relation to the tax paid by another person, that person is required to pass on the benefit of the refund to the person who paid the tax. Where this is not done, the amount must be repaid to the Commissioner together with interest at the current rate of 15.76 per cent. A penalty is also specified.
Contact us if you would like further information.
