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TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES    View history reference

Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules    View history reference

PART 4-25 - CHARGES AND PENALTIES  

Division 284 - Administrative penalties for statements, unarguable positions and schemes    View history reference

Subdivision 284-B - Penalties relating to statements    View history reference

Operative provisions

SECTION 284-90  BASE PENALTY AMOUNT  

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284-90(1)  

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The base penalty amount under this Subdivision is worked out using this table and subsections (1A) to (2), and section 284-224 if relevant:
Base penalty amount
ItemIn this situation:The base penalty amount is:
1You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from intentional disregard of a *taxation law (other than the *Excise Acts) by you or your agent75% of your *shortfall amount or part
2You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from recklessness by you or your agent as to the operation of a *taxation law (other than the *Excise Acts)50% of your *shortfall amount or part
3You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from a failure by you or your agent to take reasonable care to comply with a *taxation law (other than the *Excise Acts)25% of your *shortfall amount or part
3AA statement described in subsection 284-75(1) or (4) was false or misleading because of intentional disregard of a *taxation law (other than the *Excise Acts) by you or your *agent but did not result in you having a *shortfall amount60 penalty units
3BA statement described in subsection 284-75(1) or (4) was false or misleading because of recklessness by you or your *agent as to the operation of a *taxation law (other than the *Excise Acts) but did not result in you having a *shortfall amount40 penalty units
3CA statement described in subsection 284-75(1) or (4) was false or misleading because of a failure by you or your *agent to take reasonable care to comply with a *taxation law (other than the *Excise Acts) but did not result in you having a *shortfall amount20 penalty units
4You have a *shortfall amount, all or part of which resulted from you or your agent treating an *income tax law or the *petroleum resource rent tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable, and that amount is more than your *reasonably arguable threshold.25% of your *shortfall amount or part
5You have a *shortfall amount because of section 284-30 (about trusts) and:25% of your *shortfall amount or part
 (a)your shortfall amount or part of it resulted from you or your agent treating an *income tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable; and 
 (b)because of that treatment, the trust ' s net income would have been reduced, or the trust ' s *tax loss would have been increased, for the income year by more than the trust ' s *reasonably arguable threshold 
6You have a *shortfall amount because of section 284-35 (about partnerships) and:25% of your *shortfall amount or part
 (a)your shortfall amount or part of it resulted from you or your agent treating an *income tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable; and 
 (b)because of that treatment, the partnership net income would have been reduced, or the partnership loss would have been increased, for the income year by more than the partnership ' s *reasonably arguable threshold 
7You are liable to an administrative penalty under subsection 284-75(3)75% of the tax-related liability concerned
8(Repealed by No 75 of 2005) 

284-90(1A)  

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The *base penalty amount in an item of the table in subsection (1) that applies to you is taken to be doubled if:


(a) on or before the day (your trigger day ) applying to you under subsection (4) for that table item:


(i) the Commissioner has made an assessment of your income tax for one or more income years; or

(ii) the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to you, or in relation to the *global parent entity for the group of which you are a member, for a period; or

(iii) you have given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and


(b) you were a *significant global entity for:


(i) whichever of those income years or periods that ends on the most recent day; or

(ii) if more than one of them ends on that most recent day - any of those income years or periods that ends on that most recent day.

Note:

For subparagraph (a)(iii), you may be allowed to give statements for a 12 month period other than an income year (see section 815-360 of the Income Tax Assessment Act 1997 ).

284-90(1B)  

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However, subsection (1A) is taken never to have applied to you in relation to your trigger day if:


(a) the Commissioner makes an assessment of your income tax for the income year that includes your trigger day; and


(b) you are not a *significant global entity for that income year.

284-90(2)  

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If 2 or more items in that table apply and one of them produces a greater *base penalty amount than any of the others, use that item.

284-90(3)  

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An entity ' s reasonably arguable threshold for an income year is:


(a) unless paragraph (b) applies - the greater of $10,000 or 1% of whichever of the following applies:

(i) the income tax payable by the entity for the income year, worked out on the basis of the entity ' s *income tax return;

(ii) the *petroleum resource rent tax payable by the entity for the year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987 ) most closely corresponding to the income year, worked out on the basis of the entity ' s return under Division 1 of Part VI of that Act; or
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(b) if the entity is a trust or partnership - the greater of the following amounts:


(i) $ 20,000;

(ii) 2 % of the entity ' s * net income (if any) for the income year worked out on the basis of the entity ' s * income tax return.

284-90(4)  

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For the purposes of paragraph (1A)(a), the following day applies to you for the relevant item of the table in subsection (1):


(a) for any of table items 1 to 3C - the day you made the statement referred to in that item;


(b) for any of table items 4 to 6 - the day you made the statement to which that item relates and that is referred to in subsection 284-75(2) ;


(c) for table item 7 - the day the return, notice or other document to which that item relates, and that is referred to in subsection 284-75(3) , was required to be given.


 



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