7Penalty in relation to unpaid tax

7 Penalty in relation to unpaid tax

(1) For subsections 7A(1) and (1A) of the Act, this section determines the penalty payable by: (a) the holder of an instrument in relation to apparatus licence tax that remains unpaid after the due day; and (b) the licensee for a spectrum licence in relation to spectrum licence tax that remains unpaid after the due day. (2) For each day that tax remains unpaid after the due day, the penalty is: (a) the general interest charge rate; multiplied by (b) the amount of tax that remained unpaid at the start of the day; divided by (c) the number of days in the year in which the day falls.

Note: Example: A person fails to pay apparatus licence tax of $365,000 for 10 days after the due day, at a time when the general interest charge rate is 12 percent. Each of those 10 days occurs during a year that is not a leap year. For each of those 10 days, the penalty is:

Note: 12% x $365,000 ÷ 365 = $120

Note: If, after those 10 days, the person pays the tax, no further penalty is payable. All the penalty payable by the person in relation to the unpaid tax is:

Note: 10 days x $120 per day = $1,200.

(3) Penalty determined by this section: (a) is payable to the ACMA on behalf of the Commonwealth; and (b) may be recovered as a debt due to the Commonwealth. (4) Subsection (2) is subject to sections 10 to 13.