INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VII - PENALTY TAX  

SECTION 226L   226L   PENALTY TAX WHERE UNARGUABLE POSITION TAKEN ABOUT SCHEME  
Subject to this Part, if:


(a) a taxpayer has a tax shortfall for a year; and


(b) the shortfall or part of it was caused by the taxpayer in a taxation statement treating an income tax law as applying in relation to a scheme in a particular way; and


(c) the scheme was a tax avoidance scheme within the meaning of subsection 224(1) ; and


(d) none of the scheme sections applies in relation to the scheme;

the taxpayer is liable to pay, by way of penalty, additional tax equal to:


(e) if, when the statement was made, it was reasonably arguable that the way in which the application of the law was treated was correct - 25% of the amount of the shortfall or part; or


(f) in any other case - 50% of the amount of the shortfall or part.


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