Issue
1
Can a taxpayer claim a deduction for general interest charge paid during the income year, under paragraph 25-5(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
2
Yes, a general interest charge paid during an income year is deductible under paragraph 25-5(1)(c) of the ITAA 1997.
Facts
3
The taxpayer's amended assessment for a previous year includes amounts in respect of a general interest charge.
4
The amended assessment is paid during the current tax year.
Reasons for Decision
5
The general interest charge imposed on late payments of taxes and penalties is specifically deductible under paragraph 25-5(1)(c) of the ITAA 1997.