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 288 - Miscellaneous administrative penalties  

SECTION 288-115   AMIT UNDER OR OVER RESULTING FROM INTENTIONAL DISREGARD OF OR RECKLESSNESS AS TO TAXATION LAW  

288-115(1)  
An entity is liable to an administrative penalty if:


(a) the entity is a trustee of an *AMIT for an income year (the base year ); and


(b) the AMIT has an *under or *over for the base year; and


(c) at least one of the items in the table in subsection (3) applies in respect of the under or over.

288-115(2)  
To avoid doubt, subsection (1) has a separate operation in respect of each *under or *over mentioned in paragraph (1)(b).

288-115(3)  
The amount of the penalty is 47% of the amount worked out using this table:


Amount of penalty
Item Column 1 Column 2 Column 3
In this situation ... in the case of an *under or *over covered by subsection (5), the amount is: in the case of an *under or *over covered by subsection (6), the amount is:
1 if the *under or *over resulted from intentional disregard of a *taxation law (other than the *Excise Acts) by the trustee of the *AMIT or the trustee ' s agent 75% of the under or over 30% of the under or over
2 if the *under or *over resulted from recklessness by the trustee of the *AMIT or the trustee ' s agent as to the operation of a *taxation law (other than the *Excise Acts) 50% of the under or over 20% of the under or over

288-115(4)  
Despite subsection (3):


(a) if the penalty specified under column 3 of item 1 of the table in that subsection is less than 60 penalty units - the amount of the penalty is 60 penalty units; and


(b) if the penalty specified under column 3 of item 2 of the table in that subsection is less than 40 penalty units - the amount of the penalty is 40 penalty units.

288-115(5)  
This subsection covers the following:


(a) an *under of:


(i) a character relating to assessable income; or

(ii) a character relating to *exempt income; or

(iii) a character relating to *non-assessable non-exempt income;


(b) an *over of a character relating to a *tax offset.

288-115(6)  
This subsection covers the following:


(a) an *over of:


(i) a character relating to assessable income; or

(ii) a character relating to *exempt income; or

(iii) a character relating to *non-assessable non-exempt income;


(b) an *under of a character relating to a *tax offset.

288-115(7)  
If both items in the table in subsection (3) apply, use item 1 and not item 2.

288-115(8)  
If the income year corresponds to a financial year that is a temporary budget repair levy year (within the meaning of section 4-11 of the Income Tax (Transitional Provisions) Act 1997) , treat the reference in subsection (3) to 47% as instead being a reference to 49%.


 

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