Australian Tax Office Clarifies Tax Debt Interest Charge Policy

The Australian Taxation Office issued a guide to how it remits interest charges on tax debts amid claims it has acted inconsistently and unfairly.

Each request for remission of the general interest charge on late or unpaid tax debts is reviewed on its own merits, the ATO said in a posting Thursday. The charge is 10.65% for January-March this year.

• Requests would likely be declined if they relate to adverse business conditions, economic downturns, or clients failing to pay invoices, the agency said. But natural disasters, ill health, industrial action, and family violence, among other situations, may warrant remission. ...