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The interest on overdue tax debt is known as general interest charge (GIC). GIC is tax deductible. Now and then, individuals experience circumstances where they cannot pay the tax bills and the interest rate for those double than what they are paying on a home loan. In these circumstances, they sometimes realise that the payment they make is actually for GIC not on the tax bills which are due. Thus, they can ask ATO to remit the GIC which ATO will consider if their claims are justifiable.
The Tax Office can remit GIC fully or partially in any of the following circumstances:
If the Tax Office decides not to remit GIC amount fully, in this case, the taxpayer cannot object or review provisions to obtain a review of the facts of the Tax Office’s decision. However, the taxpayer can challenge this decision by using administrative laws.