If you refuse or fail to comply with the Commissioner's notice, you have not committed an offence. This means you will not be prosecuted if the CFC or a partnership involving a CFC does not keep the records listed above.
However, if you fail to meet the substantiation requirements because you have not produced the documents requested, the CFC will be treated as if it has failed the active income test.
As a result, the Tax Office may amend your tax assessment to include attributable income. You may also have to pay a penalty for the tax that would have been paid if you had not claimed the active income test exemption.