Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules  

PART 4-25 - CHARGES AND PENALTIES  

Division 288 - Miscellaneous administrative penalties  

SECTION 288-80   ADMINISTRATIVE PENALTY FOR OVER DECLARING CONDUIT FOREIGN INCOME  

288-80(1)    
An *Australian corporate tax entity is liable to an administrative penalty if:

(a) the entity makes a *frankable distribution that has an *unfranked part; and

(b) the entity declares an amount of the unfranked part to be *conduit foreign income; and

(c) the sum of the amounts declared exceeds the amount of the entity ' s conduit foreign income at:

(i) if the entity declares the distribution before making the distribution - the time of the declaration; or

(ii) otherwise - the time the distribution is made.

288-80(2)    
The amount of the penalty is the sum of the amounts worked out under subsections (3) and (4).

288-80(3)    

The amount is:

*Corporate tax rate

×

Excess mentioned in paragraph (1)(c)

×

Australian membership       interests           Total membership       interests

where:

Australian membership interests
means the number of *membership interests or *non-share equity interests in the entity that are not covered by the definition of foreign membership interests in subsection (4).

total membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution.

288-80(4)    

The amount is:

Applicable   withholding tax rate

×

Excess referred to in paragraph (1)(c)

×

Foreign membership       interests           Total membership       interests

where:

applicable withholding tax rate
means 50% of the rate of tax set out in paragraph 7(a) of the Income Tax (Dividends, Interest and Royalties Withholding Tax) Act 1974 .

foreign membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution and in relation to whom the entity is required to withhold amounts under section 12-210 disregarding the operation of section 12-300 (about limits on the amount withheld).

total membership interests
means the number of *membership interests or *non-share equity interests in the entity held by entities that are entitled to receive the *distribution.