The ATO should consider reducing penalties relating to a lack of reasonably arguable position for taxpayers who have made relevant disclosures in reportable tax position schedules.
We agreed in principle with this recommendation and implementation was completed on 28 August 2014.
PS LA 2012/5 was updated to provide further guidance on reportable tax position schedule disclosures. Remission of penalties can be considered where appropriate disclosures have been made on the reportable tax position schedule. This policy is consistent with the application of penalties outlined in PS LA 2012/4 and PS LA 2012/5.