Remission of administrative penalties
Law Administration Practice Statement PS LA 2011/24External Link has been issued by the Commissioner providing guidance for the remission of administrative penalties imposed on an individual or super for failing to comply with their release authority obligations.
Administrative penalties apply if an individual or super fund does not comply with their obligations in relation to a release authority. Section 298-20External Link of Schedule 1 of the TAA, however, gives the ATO the discretion to remit all or part of each of the administrative penalties imposed.
PS LA 2011/24 provides guidance for the remission of administrative penalties if either:
- an individual does not give a release authority for excess non-concessional contributions tax to a super fund within 21 days after the date of the release authority
- an individual gave a release authority to a super fund and the total amount release in accordance with the release authority was more than the amount required to be released
- a super fund does not release the required amount within 30 days after receiving the release authority.
The PS LA states that each case is to be considered on its merits and provides examples to demonstrate what the ATO will consider when determining whether to remit these penalties.
In determining whether it is appropriate to exercise the discretion, the Commissioner will:
- consider information provided by the individual or super fund
- consider evidence of the individual's or super fund's attempt to comply with their obligations in relation to a release authority
- consider facts that are relevant to the appropriateness of the penalty in the circumstances
- act in accordance with the principles of the compliance model and Taxpayers' charter
- apply the good-decision making model.
If the individual or super fund has made a genuine attempt to comply with their obligations, the penalty may be remitted in full. However, if they have made little or no attempt to meet their obligations, the penalty may not be remitted at all.
It will be considered that a genuine attempt to comply was made if the individual or super fund took action to understand their obligations and, once they became aware of the obligations, immediately took corrective action.
No attempt to comply will occur if the individual or super fund became aware of their obligations but failed to take action, or deliberately delayed complying with their obligations.
The practice statement does not deal with the:
- administrative penalty imposed if a super fund fails to provide a statement of the payment of the release authority, and a copy of the statement to the person within 30 days
- impositions or remission of GIC.
Refer to Law Administration Practice Statement PS LA 2011/24External LinkExcess contributions tax - release authority - remission of certain administrative penalties where an individual or superannuation provider does not comply with obligations in relation to a release authority.
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