Income Tax Assessment Act 1936
Subject to this section, a person who is an attributable taxpayer:
(a) in relation to the year of income of the person commencing on 1 July 1990 or in relation to a subsequent year of income of the person; and
(b) in relation to a particular trust estate;
must keep records (in Australia or elsewhere) containing particulars of:
(c) the acts, transactions and other circumstances that resulted in the person being an attributable taxpayer in relation to that year of income and in relation to that trust estate; and
(d) except where subsection 102AAZD(4) applies in relation to the trust estate and in relation to the year of income of the person - the basis of the calculation of the attributable income of the trust estate for each year of income of the trust estate any part of which occurred during the year of income of the person; and
(e) the basis of the calculation of the amounts (including nil amounts) included in the assessable income of the person of the year of income of the person under section 102AAZD .
There is an administrative penalty if you do not keep or retain records as required by this section: see section 288-25 in Schedule 1 to the Taxation Administration Act 1953 .
A person who contravenes subsection (1) commits an offence punishable on conviction by a fine not exceeding 30 penalty units.
See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
An offence under subsection (2) is an offence of strict liability.
For strict liability , see section 6.1 of the Criminal Code .
A person who is required by this section to keep records must:
(a) keep the records in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and
(b) keep the records so as to enable the person ' s liability under this Act to be readily ascertained. 102AAZG(4)
This section does not require a person to keep a record of information if:
(a) the person did not know, and had no reasonable grounds to suspect, that the person was an attributable taxpayer of the kind mentioned in subsection (1); or
(b) the person did not know that, and made all reasonable efforts to ascertain whether, the person was an attributable taxpayer as mentioned in subsection (1); or
(c) the person did not know, and made all reasonable efforts to obtain, the information.
A defendant bears an evidential burden in relation to the matters in subsection (4), see subsection 13.3(3) of the Criminal Code .
Subject to subsections (6) and (7), the following provisions apply to a partnership as if the partnership were a person:
(a) subsections (1) to (4) (inclusive) of this section;
(b) subsections 262A(4) and (5) , in so far as those subsections apply to records kept under or for the purposes of this section;
(c) Part III of the Taxation Administration Act 1953 , in so far as that Part of that Act relates to the provisions covered by paragraph (a) or (b) of this subsection. 102AAZG(6)
Where, by virtue of subsection (5), an offence is taken to have been committed by a partnership, that offence is taken to have been committed by each of the partners. 102AAZG(7)
In a prosecution of a person for an offence by virtue of subsection (6), it is a defence if the person proves that the person:
(a) did not aid, abet, counsel or procure the act or omission by virtue of which the offence was taken to have been committed; and
(b) was not in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, an act or omission by virtue of which the offence is taken to have been committed.
The defence under subsection (7) does not apply in relation to offences under Part 2.4 of the Criminal Code .
A defendant bears a legal burden in relation to the matters in subsection (7), see section 13.4 of the Criminal Code .
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