27Penalty for unpaid duty

##### 27 Penalty for unpaid duty (1) If any gift duty payable in respect of a gift remains unpaid after the expiration of the period of 30 days after service upon the donor of notice of the assessment made in respect of the gift, additional gift duty is due and payable by way of penalty by the person liable to pay the gift duty at the rate of 20% per annum on the amount unpaid, computed from the expiration of that period, or, where, under section 26, the Commissioner has granted an extension of time for payment of the gift duty or has permitted payment of the gift duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the thirtieth day after service of the notice of assessment upon the donor. (2) If any penalty duty remains unpaid after the time when it became due and payable or would, but for section 26, have become due and payable, additional gift duty is due and payable by way of penalty by the person liable to pay the penalty duty at the rate of 20% per annum on the amount unpaid, computed from that time, or, where, under section 26, the Commissioner has granted an extension of time for payment of the penalty duty or has permitted payment of the penalty duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the penalty duty was originally due and payable. (3) Where additional gift duty is payable by a person under this section in relation to an amount of gift duty and: (a) the Commissioner is satisfied that: (i) the circumstances that contributed to the delay in payment of the gift duty were not due to, or caused directly or indirectly by, an act or omission of the person; and (ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; (b) the Commissioner is satisfied that: (i) the circumstances that contributed to the delay in payment of the gift duty were due to, or caused directly or indirectly by, an act or omission of the person; (ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and (iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty; or (c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty; the Commissioner may remit the additional gift duty or part of the additional gift duty. (4) Where judgment is given by, or entered in, a court for the payment of: (a) an amount of gift duty; or (b) an amount that includes an amount of gift duty; then: (c) the gift duty shall not be taken, for the purposes of subsections (1) and (2), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and (d) if the judgment debt carries interest, the additional gift duty that would, but for this paragraph, be payable under this section in relation to the gift duty shall, by force of this paragraph, be reduced by: (i) in a case to which paragraph (a) applies—the amount of the interest; or (ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the gift duty bears to the amount of the judgment debt. (5) In subsections (3) and (4), unless the contrary intention appears, gift duty includes penalty duty. (6) In this section, penalty duty means additional gift duty under section 42.