COM53200 - Claims / reliefs: other reliefs: S458 CTA 2010 (formerly S419(4) ICTA 1988) - repayment interest

The amount of repayment interest due under Section 826(4) ICTA 88, because of a claim under Section 458 (formerly S419(4)), depends on when the repayment, release or write-off of the loan takes place.

If the loan is repaid, released or written off

• Earlier than 9 months and 1 day after the end of the AP in which the loan was made, interest is due from the later of

• 9 months after the AP in which the loan was made

• The date on which the tax to be repaid was paid

• More than 9 months after the end of the AP in which it was made, interest is due from the later of

• 9 months after the AP in which the repayment, release or write off was made

• The date on which the tax to be repaid was paid

COTAX handles this automatically. When the Technical Caseworker gives effect to the relief by using Function RAMA (Record / Amend Assessment) to record a Taxpayer Amendment (Word 30KB) or process a Claim, the computer translates the end date of the AP during which the loan was repaid, released or written off into an Effective Date of Payment (EDP) for the S458 credit it creates. This allows it to calculate the correct repayment interest to add to the repayment.

For a list of functions to use in particular situations, see COM53012.

For legislation applying to this subject, see COM53013.