Taxation Administration Act 1953
Note: See section 3AA .
Chapter 4 - Generic assessment, collection and recovery rulesSECTION 284-160 BASE PENALTY AMOUNT : SCHEMES 284-160(1)
The base penalty amount for a * scheme to which subsection 284-145(1) or (2C) applies is, subject to section 284-224 :
(a) 50 % of your * scheme shortfall amount; or
(b) 25 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.
284-160(2)
The base penalty amount for a * scheme to which subsection 284-145(2A) applies is, subject to section 284-224 :
(a) 25 % of your * scheme shortfall amount; or
(b) 10 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.
284-160(3)
The base penalty amount for a * scheme to which subsection 284-145(2B) applies is worked out using this table and section 284-224 if relevant:
Base penalty amount | ||
Item | Column 1 | Column 2 |
In this situation: | The base penalty amount is: | |
1 | having regard to any relevant matters, it is reasonable to conclude that an entity that (alone or with others) entered into or carried out the * scheme, or part of it, did so with the sole or dominant purpose of that entity or another entity getting a * transfer pricing benefit from the scheme | the sum of: |
(a) | 50 % of your * scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and | |
(b) | 25 % of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity ' s agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is * reasonably arguable | |
2 | item 1 does not apply | the sum of: |
(a) | 25 % of your * scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and | |
(b) | 10 % of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity ' s agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is *reasonably arguable |
Note:
For special rules about when transfer pricing treatment is not reasonably arguable, see Subdivision 284-E .
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