The law imposes penalties on trustees of funds for:
- failing to lodge the tax return on time and in the approved form
- having a tax shortfall or over-claiming a credit that is caused by taking a position that is not reasonably arguable
- making a false or misleading statement in the approved form
- refusing to provide a tax return from which the Commissioner of Taxation can determine a liability
- failing to keep and produce proper records
- preventing access to premises and documents
- failing to retain or produce declarations.
The trustee of a fund is liable for the GIC where:
- tax remains unpaid after the due date for payment, or
- a variation of a pay as you go (PAYG) instalment rate or amount is less than 85% of the amount or rate that would have covered the fund's actual liability for the year.
The trustee of a fund is liable for the shortfall interest charge (SIC) where the fund's income tax assessment is amended to increase their liability. Generally, the SIC accrues on the shortfall amount from the due date of the original assessment until the day before the assessment is amended.
Knowingly answering a question incorrectly will be treated as a more serious offence than voluntarily disclosing a breach of the legislation.
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