Income tax: penalty tax and trusts
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Omit the paragraph; substitute:
56. Where there is a tax shortfall but both parties have exercised reasonable care, the penalty tax provisions are not triggered by either the trustee or the beneficiary(s). In these circumstances, neither the trustee nor the beneficiary(s) would be liable to penalty tax. Example 6 in paragraphs 74 and 75 of this Ruling illustrates this possibility.
Omit 'IT 2651'.
Commissioner of Taxation
31 March 2010