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  • Compliance – administrative and failure to lodge penalties

    The Reportable Tax Position schedule (RTP schedule) is part of the company tax return. As such it is required to be lodged by the due date for lodgment of your company tax return.

    Administrative penalties will apply if either:

    1. you make a statement that is false or misleading including omissions
    2. you fail to lodge on time.

    Entities that are significant global entities (SGE) will be subject to increased administrative and failure to lodge penalties from 1 July 2017.

    Administrative penalties – failure to lodge

    The community’s expectation is for penalties to be administered fairly where those who have failed to lodge approved forms are penalised and those who are trying to do the right thing are given reasonable opportunity to comply.

    The RTP schedule is an approved form being part of the income tax return. Subsection 286-75(1) of the Taxation Administration Act 1953 can be applied where an entity has failed to lodge.

    The following table sets out failure to lodge penalties for large entities and SGE:

    Days late

    28 days or less

    29 to 56 days

    57 to 84 days

    85 to 112 days

    More than 112 days

    Large entity failure to lodge penalties

    $1,050

    $2,100

    $3,150

    $4,200

    $5,250

    SGE failure to lodge penalties

    $105,000

    $210,000

    $315,000

    $420,000

    $525,000

    You will be given a reminder about your late lodgment before penalties are imposed. Penalties will not be imposed unless you receive a reminder on a previous occasion.

    If you are experiencing unexpected difficulties with lodgment you can:

    1. Request an extension of time to lodge prior to the due date for the lodgment.
    2. Make requests for the remission of the penalty.

    See also:

    Administrative penalties – false or misleading statements (including omissions)

    As statements in the RTP schedule do not give rise to a shortfall amount, penalties for a false and misleading statement is calculated under Items 3A, 3B or 3C of subsection 284-90(1) of the Taxation Administration Act 1953.

    The following table sets out the penalty amounts for false or misleading statements including omissions:

    Penalty units

    Non – SGE

    SGE

    Intentional disregard

    60 penalty units ($10,800)

    120 penalty units ($25,200)

    Recklessness

    40 penalty units ($7,200)

    80 penalty units ($16,800)

    No reasonable care

    20 penalty units ($3,600)

    40 penalty units ($8,400)

    Non disclosure of a RTP position is also taken into account in determining whether any shortfall penalty should be increased under paragraph 284-220(1)(a) of the Taxation Administration Act 1953, where a false or misleading statement has been made in respect to that position and shortfall penalties apply.

    See also:

    Last modified: 11 Feb 2019QC 50949