COM80220 - Interest: how interest is calculated: common period rules - reallocating from tax to tax QIP AP (Action Guide)

To understand the common period rules when reallocating from tax to tax when the receiving Accounting Period (AP) is a QIP case, follow steps 1 to 16.

1.

Is the first instalment date for the AP to which you are reallocating later than the EDP of the payment?

  • If yes, go to step 2
  • If no, go to step 7

2.

Is today’s date earlier than the first instalment date for the AP to which you are reallocating?

  • If yes, go to step 3
  • If no, go to step 10

3.

Is the EDP of the payment earlier than today’s date?

  • If yes, go to step 4
  • If no, go to step 16

4.

The EDP of the RTO posting is set to today’s date. Is the normal due date of the AP from which you are reallocating later than the EDP of the payment?

  • If yes, go to step 5
  • If no, go to step 6

5.

Repayment interest is due on the AP from which you are reallocating for the period from the normal due date +1 to today’s date.

6.

Repayment interest is due on the AP from which you are reallocating for the period from the payment’s EDP +1 to the first instalment date on the AP to which you are reallocating.

7.

The EDP of the RTO posting is set to the EDP of the payment reallocated. Is the EDP of the payment earlier than the normal due date for the AP from which you are reallocating?

  • If yes, go to step 8
  • If no, go to step 9

8.

Credit interest is restricted on the AP from which you are reallocating.

9.

The payment reallocated was not interest bearing.

10.

The EDP of the RTO posting is set to the first instalment date for the AP to which you are reallocating. Is the first instalment date on the AP to which you are reallocating earlier than the normal due date for the AP from which you are reallocating>

  • If yes, go to step 11
  • If no, go to step 12

11.

Credit interest is restricted on the AP from which you are reallocating.

  • Go to step 13

12.

No credit interest restriction is applied to the AP from which you are reallocating.

  • Go to step 13

13.

Is the normal due date of the AP from which you are reallocating later than the EDP of the payment?

  • If yes, go to step 14
  • If no, go to step 15

14.

Repayment interest is due on the AP from which you are reallocating for the period from the normal due date +1 to the first instalment date for the AP to which you are reallocating.

15.

Repayment interest is due on the AP from which you are reallocating for the periods from the payment’s EDP +1 to the first instalment date of the AP to which you are reallocating.

16.

The EDP of the RTO posting is set to the EDP of the payment reallocated.