34Interest in respect of tax defaults

34 Interest in respect of tax defaults (1) If a tax default occurs, the taxpayer is liable to pay interest on the unpaid primary and penalty tax. (2) Interest accrues at the statutory interest rate as in force from time to time. (3) Interest is calculated on a daily basis from the date of the tax default to the date of payment. (4) However, if: (a) a taxpayer fails to make periodic payments of tax as required under a taxation law; and (b) the Commissioner makes an assessment of the tax to which the tax defaults relate; the Commissioner may fix, in the assessment, for each financial year to which the tax defaults relate, a date (which must be at or about the mid-point of the part of the relevant financial year to which the tax defaults relate) from which interest on the aggregate amount involved in the tax defaults for the relevant financial year is to be calculated.

Taxation Administration Act 2007 19 (5) If the Commissioner exercises the power conferred by subsection (4), interest is to be calculated in accordance with the