INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VII - PENALTY TAX  

SECTION 226Z   226Z   REDUCTION OF PENALTY TAX - DISCLOSURE BEFORE TAX AUDIT NOTIFIED  
If:


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


(b) the taxpayer voluntarily tells the Commissioner in writing about the shortfall or part before the earlier of:


(i) the day the Commissioner informs the taxpayer that a tax audit relating to the taxpayer in respect of the year was to be carried out; or

(ii) if the Commissioner has made a public statement requesting taxpayers to make a voluntary disclosure by a particular day about a scheme or transaction that applies to the taxpayer's financial affairs - before that day;

the amount of the additional tax because of the shortfall or part 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.


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