The Commissioner of State Revenue will issue a new Interest and Penalty Tax Revenue Ruling to take effect on 1 January 2021.
An unofficial, unpublished version is available here. The Ruling replaces three existing rulings for tax legislation (including for payroll tax).
The new Ruling aligns closely with the Taxation Administration Act 1997 and improves consistency between tax lines. Revisions include:
• premium interest and penalty tax are no longer mutually exclusive;
• emphasis on what constitutes ‘full disclosure’; and
• premium interest is not applied where the taxpayer has taken ‘reasonable care’.
In order to achieve the consistency in the treatment of interest and penalty tax for all Tasmanian taxes, interest and penalties relating to payroll tax are no longer harmonised with other Australian jurisdictions.
The Ruling will apply to assessments and reassessments made on and after 1 January 2021 and, for clarity, includes a one-page flowchart identifying the 17 possible interest and penalty tax combinations.
The Commissioner of State Revenue will release the official version of the Interest and Penalty Tax Revenue Ruling on 1 January 2021.