115‑65 Liability to GIC on shortfall in 115‑65 Liability to GIC on shortfall in instalments worked out on the basis of varied rate

115‑65 Liability to GIC on shortfall in instalments worked out on the basis of varied rate

(1) You are liable to pay the *general interest charge under this section if: (a) an instalment rate (the varied rate) you choose under section 115‑50 is your *applicable instalment rate for an *instalment quarter (the variation quarter) in an *MRRT year; and (b) the varied rate is less than 85% of your *benchmark instalment rate for the MRRT year.

Note: For the Commissioner’s power to remit general interest charge, see section 8AAG.

(2) You are liable to pay the *general interest charge on the amount worked out as follows: Start formula open bracket Rate discrepancy times Your *instalment income for the variation quarter close bracket plus Credit adjustment end formula where:

credit adjustment means:

(a) if, as a result of using the varied rate for the variation quarter, you claimed a credit under section 115‑60—the amount worked out as follows:
![Start formula Rate discrepancy times Your *instalment income for the earlier instalment quarters in the *MRRT year end formula](image.004.png)
or the sum of the amounts of the credits, whichever is less; and
(b) otherwise—nil.

rate discrepancy means the difference between the varied rate and the lesser of:

(a) the rate that would have been your \*applicable instalment rate for the variation quarter if you did not choose an instalment rate for the variation quarter or an earlier \*instalment quarter in the \*MRRT year; and
(b) your \*benchmark instalment rate for that MRRT year.

(3) You are liable to pay the charge for each day in the period that: (a) started at the beginning of the day by which the instalment for the variation quarter was due to be paid; and (b) finishes at the end of the day on which your *assessed MRRT for the *MRRT year is due to be paid. (4) The Commissioner must give you written notice of the *general interest charge to which you are liable under subsection (2). You must pay the charge within 14 days after the notice is given to you. (5) If any of the *general interest charge to which you are liable under subsection (2) remains unpaid at the end of the 14 days referred to in subsection (4), you are also liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the end of those 14 days; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the unpaid amount; (ii) general interest charge on the unpaid amount.