INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 11 - Additional tax by way of penalty  

SECTION 160ARZK  

160ARZK   REDUCTION OF PENALTY TAX - DISCLOSURE BEFORE TAX AUDIT NOTIFIED  
If:

(a) under a shortfall section, a company is liable to pay additional tax in respect of a franking year or a refund because of a franking tax shortfall or part of a franking tax shortfall; and

(b) before the Commissioner had informed the company that a tax audit relating to the company in respect of the year, or the refund, was to be carried out, the company voluntarily told the Commissioner, in writing, about the shortfall or part;

the amount of the additional tax is reduced:

(c) if the shortfall or part is at least $1,000 - by 80%; or

(d) if the shortfall or part is less than $1,000 - to nil.