Show download pdf controls
  • SGE penalties extended to subsidiary entities

    On 22 June 2020, the Application of significant global entity (SGE) penalties to subsidiary entities received royal assent. The law extends the increased SGE penalty rates to SGE subsidiary members of tax consolidated or multiple entry consolidated (MEC) groups.

    Law changes for SGE subsidiaries

    Under the legislation, subsidiary members of SGE consolidated or MEC groups are subject to the same increased penalties as their head company from 5 December 2019 for:

    • failing to lodge any form (return, notice, statement, or other document) by the due date in the approved form. The minimum penalty for lodging late is $111,000 and the maximum is $555,000
    • making false or misleading statements, failing to have a reasonably arguable position and failing to provide a document to us where it is necessary to determine a tax-related liability accurately. Broadly, the penalties are doubled, compared to non-SGEs.

    Avoiding SGE penalties

    To avoid incurring SGE penalties, make sure you are aware of your lodgment and reporting obligations.

    If you're unable to meet the lodgment due date, you should request a lodgment deferral as soon as possible. A deferred due date will assist you to lodge on time and without error.

    Advice and guidance

    Public and private advice and guidance is available to help you understand how the law applies to you.

    For further information or questions about:

    See also:

    Last modified: 07 Oct 2020QC 63868