Australian Tax Ombudsman Reviewing Interest Charge Crackdown

Australia’s tax ombudsman is reviewing whether tax office interest charges on overdue payments is legal and fair to taxpayers.

It follows an Australian Tax Office bill preventing taxpayers from claiming a tax credit on the general interest charge of around 11% on late payments, that came into effect July 1.

Tax bodies had called on the Australian government to ax the plan, but senators argued that taxpayers who follow the law and pay their taxes on time “should not be disadvantaged” compared to those who are late.

• Deliberate late payment of tax liabilities should be discouraged, though ...