Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)
Schedule 3 Fringe benefits tax
Part 1 Amendment of the Fringe Benefits Tax Assessment Act 1986
3 After section 115A
Insert:
115B Penalty tax for making unreasonable estimate of income
If:
(a) under subsection 58GA(2), an employer makes an estimate of an amount; and
(b) the amount of the estimate is less than $10 million; and
(c) the estimate is not a reasonable estimate;
then:
(d) the Commissioner may make a reasonable estimate of that amount (taking into account the assumption in paragraph 58GA(2)(e)); and
(e) if the amount of that reasonable estimate is $10 million or more - the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the tax payable in respect of the benefit.
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