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 284 - Administrative penalties for statements, unarguable positions and schemes  

Subdivision 284-C - Penalties relating to schemes  

Operative provisions

SECTION 284-160   BASE PENALTY AMOUNT : SCHEMES  

284-160(1)  


The base penalty amount for a * scheme to which subsection 284-145(1) or (2C) applies is, subject to section 284-224 :


(a) 50 % of your * scheme shortfall amount; or


(b) 25 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.

284-160(2)  
The base penalty amount for a * scheme to which subsection 284-145(2A) applies is, subject to section 284-224 :


(a) 25 % of your * scheme shortfall amount; or


(b) 10 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.

284-160(3)  
The base penalty amount for a * scheme to which subsection 284-145(2B) applies is worked out using this table and section 284-224 if relevant:


Base penalty amount
Item Column 1 Column 2
In this situation: The base penalty amount is:
1 having regard to any relevant matters, it is reasonable to conclude that an entity that (alone or with others) entered into or carried out the * scheme, or part of it, did so with the sole or dominant purpose of that entity or another entity getting a * transfer pricing benefit from the scheme the sum of:
(a) 50 % of your * scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and
(b) 25 % of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity ' s agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is * reasonably arguable
2 item 1 does not apply the sum of:
(a) 25 % of your * scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and
(b) 10 % of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity ' s agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is *reasonably arguable

Note:

For special rules about when transfer pricing treatment is not reasonably arguable, see Subdivision 284-E .


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