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-B - Penalties relating to statements  

Operative provisions

SECTION 284-90   BASE PENALTY AMOUNT  

284-90(1)  


The base penalty amount under this Subdivision is worked out using this table and subsections (1A) to (2), and section 284-224 if relevant:


Base penalty amount
Item In this situation: The base penalty amount is:
1 You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from intentional disregard of a *taxation law (other than the *Excise Acts) by you or your agent 75% of your *shortfall amount or part
2 You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from recklessness by you or your agent as to the operation of a *taxation law (other than the *Excise Acts) 50% of your *shortfall amount or part
3 You have a *shortfall amount as a result of a statement described in subsection 284-75(1) or (4) and the amount, or part of the amount, resulted from a failure by you or your agent to take reasonable care to comply with a *taxation law (other than the *Excise Acts) 25% of your *shortfall amount or part
3A A statement described in subsection 284-75(1) or (4) was false or misleading because of intentional disregard of a *taxation law (other than the *Excise Acts) by you or your *agent but did not result in you having a *shortfall amount 60 penalty units
3B A statement described in subsection 284-75(1) or (4) was false or misleading because of recklessness by you or your *agent as to the operation of a *taxation law (other than the *Excise Acts) but did not result in you having a *shortfall amount 40 penalty units
3C A statement described in subsection 284-75(1) or (4) was false or misleading because of a failure by you or your *agent to take reasonable care to comply with a *taxation law (other than the *Excise Acts) but did not result in you having a *shortfall amount 20 penalty units
4 You have a *shortfall amount, all or part of which resulted from you or your agent treating an *income tax law or the *petroleum resource rent tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable, and that amount is more than your *reasonably arguable threshold. 25% of your *shortfall amount or part
5 You have a *shortfall amount because of section 284-30 (about trusts) and: 25% of your *shortfall amount or part
(a) your shortfall amount or part of it resulted from you or your agent treating an *income tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable; and
(b) because of that treatment, the trust ' s net income would have been reduced, or the trust ' s *tax loss would have been increased, for the income year by more than the trust ' s *reasonably arguable threshold
6 You have a *shortfall amount because of section 284-35 (about partnerships) and: 25% of your *shortfall amount or part
(a) your shortfall amount or part of it resulted from you or your agent treating an *income tax law as applying to a matter or identical matters in a particular way that was not *reasonably arguable; and
(b) because of that treatment, the partnership net income would have been reduced, or the partnership loss would have been increased, for the income year by more than the partnership ' s *reasonably arguable threshold
7 You are liable to an administrative penalty under subsection 284-75(3) 75% of the tax-related liability concerned
8 (Repealed by No 75 of 2005)

284-90(1A)  


The *base penalty amount in an item of the table in subsection (1) that applies to you is taken to be doubled if:


(a) on or before the day (your trigger day ) applying to you under subsection (4) for that table item:


(i) the Commissioner has made an assessment of your income tax for one or more income years; or

(ii) the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to you, or in relation to the *global parent entity for the group of which you are a member, for a period; or

(iii) you have given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and


(b) you were a *significant global entity for:


(i) whichever of those income years or periods that ends on the most recent day; or

(ii) if more than one of them ends on that most recent day - any of those income years or periods that ends on that most recent day.
Note:

For subparagraph (a)(iii), you may be allowed to give statements for a 12 month period other than an income year (see section 815-360 of the Income Tax Assessment Act 1997 ).

284-90(1B)  


However, subsection (1A) is taken never to have applied to you in relation to your trigger day if:


(a) the Commissioner makes an assessment of your income tax for the income year that includes your trigger day; and


(b) you are not a *significant global entity for that income year.

284-90(2)  


If 2 or more items in that table apply and one of them produces a greater *base penalty amount than any of the others, use that item.

284-90(3)  


An entity ' s reasonably arguable threshold for an income year is:


(a) unless paragraph (b) applies - the greater of $10,000 or 1% of whichever of the following applies:


(i) the income tax payable by the entity for the income year, worked out on the basis of the entity ' s *income tax return;

(ii) the *petroleum resource rent tax payable by the entity for the year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987 ) most closely corresponding to the income year, worked out on the basis of the entity ' s return under Division 1 of Part VI of that Act; or


(b) if the entity is a trust or partnership - the greater of the following amounts:


(i) $ 20,000;

(ii) 2 % of the entity ' s * net income (if any) for the income year worked out on the basis of the entity ' s * income tax return.

284-90(4)  


For the purposes of paragraph (1A)(a), the following day applies to you for the relevant item of the table in subsection (1):


(a) for any of table items 1 to 3C - the day you made the statement referred to in that item;


(b) for any of table items 4 to 6 - the day you made the statement to which that item relates and that is referred to in subsection 284-75(2) ;


(c) for table item 7 - the day the return, notice or other document to which that item relates, and that is referred to in subsection 284-75(3) , was required to be given.


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