10Interest on judgment for payment of tax only — effect on penalty

10 Interest on judgment for payment of tax only – effect on penalty

(1) This section applies if: (a) judgment is given by, or entered in, a court for the payment by a person of tax only; and (b) the judgment carries interest (judgment interest). (2) Subject to subsection (3), the judgment does not affect the application of section 7 in relation to the tax. (3) Subject to subsection (4), all the penalty payable by the person in relation to the tax (whether or not the penalty was payable before the judgment was given) is reduced by the judgment interest. (4) All the penalty payable by the person in relation to the tax cannot be reduced below zero.