COM80200 | Interest: how interest is calculated: common period rules

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Introduction

If:

• a potential CT repayment is to be allocated against CT arrears, but not interest or penalties

• there is a common period during which the repayable tax is attracting repayment interest

• has attracted credit interest

• the CT arrear will attract credit, debit, or late payment interest

then COTAX applies common period rules.

The following action guides explain how COTAX applies the rules in different circumstances:

• COM80210 relates to reallocating from tax to tax when the receiving Accounting Period (AP) is not a QIP (Quarterly Instalment Payment) case

• COM80220 relates to reallocating from tax to tax when the receiving AP is a potential or definite QIP

• COM80230 relates to reallocating from tax to either penalty or interest, regardless of the QIP status of the receiving AP