Businesses will not be hit with the full general interest charge (GIC) of 13.86% if the Tax Commissioner underestimates the amount of GST notified as required to be paid on their BAS.
This change was contained in legislation introduced into Parliament yesterday to give effect to the government's simplification of the new tax system.
Based on the fine print in the Bill, the process will work like this: if the quarterly payment notified by the Tax Office is less than 25% of your actual annual GST amount, and you vary using this amount and get it wrong by in excess of 15%, your liability for a GIC will be reduced.
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