INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 11 - Additional tax by way of penalty  

SECTION 160ARZE   PENALTY BECAUSE PRIVATE RULING DISREGARDED  

160ARZE(1)   [Taxpayer's liability]  

Subject to this Division, if:

(a) a company has a franking tax shortfall for a franking year or a refund; and

(b) a private ruling was made on the way in which a franking tax law applies to the company in respect of the year, or the refund, in relation to an arrangement; and

(c) the shortfall or part of it was caused by the company, in a taxation statement made after the ruling was made, treating that law as applying to the company in respect of the year in relation to the arrangement in a different way;

the company is liable to pay, by way of penalty, additional tax equal to 25% of the amount of the shortfall or part.

160ARZE(2)   [Court order or Tribunal decision]  

Subsection (1) does not apply if there is an order of a court, or a decision of the Tribunal, that applies to the private ruling.