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  • Application of significant global entity penalties to subsidiary entities

    Penalties apply to an entity that is both:

    • a subsidiary member of a consolidated group or a multiple entry consolidated group, and
    • a significant global entity (SGE).

    Section 284-90 of Schedule 1 to the Taxation Administration Act 1953 determines the amount of a penalty that a taxpayer is liable to pay if the taxpayer makes, for example, a false or misleading statement in relation to a taxation law.

    Section 286-80 of Schedule 1 to the Taxation Administration Act 1953 determines the amount of a penalty that a taxpayer is liable to pay if a taxpayer fails to give a return, notice, statement or other document to the Commissioner that is required to be given under a taxation law.

    The amount of penalty payable by an entity under section 284-90 or 286-80 of Schedule 1 to the Taxation Administration Act 1953 depends on certain criteria. A higher penalty is payable if, among other things, the entity is a SGE.

    To view the proposed law changes, refer to:

    • Items 139 to 141, that alter subsections 284-90(1A) and 284-90(1B) of Schedule 1 to the Tax Administration Act 1953
    • Items 142 to 144 that alter subsections 286-80(4A) and 286-80(4B) of Schedule 1 to the Tax Administration Act 1953

    The amendments will apply for members of groups:

    More information

    Treasury Laws Amendment (2019 Measures No. 3) Bill 2019External Link

      Last modified: 06 Dec 2019QC 60859