“As soon as practicable” will be determined on the facts of each case. For guidance, the Commissioner considers the term will be satisfied so long as the customer applies for the relief at the earliest opportunity and agrees to an arrangement that will see the outstanding tax paid at the earliest opportunity, or will be paid over the most reasonable period given the customer’s specific circumstances.
Those customers who require further assistance at a later date, such as having to renegotiate the terms of an arrangement, should contact us at the earliest opportunity after they know they will have difficulty in paying the tax as agreed.
So long as the customer completes an arrangement (which may have been amended at the customer's request during the period of the arrangement), the Commissioner will accept that by entering into and completing that arrangement, the test for “as soon as practicable” in respect of paying the tax will have been met.
Interest and penalties will continue to accrue for those customers entering into arrangements. However, when the arrangement is completed, and we have already established the customer meets the criteria for remission, that interest will be automatically cancelled without the need for the customer to apply for remission.
If the customer defaults on the arrangement, penalties and interest will be charged from the original due date.
If you have already paid tax late that included interest and penalties, you can request remission of the interest and penalties if your income has been affected by COVID-19.