INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VII - PENALTY TAX  

SECTION 226K   226K   PENALTY TAX WHERE UNARGUABLE POSITION TAKEN  
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 matter or identical matters in a particular way; and


(c) the shortfall or part, as the case may be, so caused exceeded whichever is the higher of:


(i) $10,000; or

(ii) 1% of the taxpayer's return tax for that year; and


(d) when the statement was made, it was not reasonably arguable that the way in which the application of the law was treated was correct;

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


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