Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 5 - Administration  

PART 5-35 - REGISTRATION AND SIMILAR PROCESSES FOR VARIOUS TAXES  

Division 426 - Process of endorsing charities and other entities  

Subdivision 426-E - Community charity corporations  

Administrative penalties

SECTION 426-195   ADMINISTRATIVE PENALTIES FOR COMMUNITY CHARITY CORPORATIONS  

Administrative penalty

426-195(1)    
All of the directors of a * community charity corporation are jointly and severally liable to an administrative penalty if:

(a)    the corporation, or a director of the corporation, holds out that the corporation is endorsed as a * deductible gift recipient and the corporation is not so endorsed; or

(b)    the corporation, or a director of the corporation, holds out that the corporation is entitled to remain endorsed as a deductible gift recipient and the corporation is not so entitled; or

(c)    the corporation, or a director of the corporation, holds out that the corporation will be endorsed, as a deductible gift recipient, at a particular time and the corporation is not so endorsed at that time.

Note:

The Commissioner is required to give written notice of the penalty (see section 298-10 ).

426-195(2)    
The amount of the penalty is:

(a)    the amount specified in the * community charity corporation guidelines for the purposes of subsection (1) ; or

(b)    the amount worked out in accordance with the method specified in the community charity corporation guidelines for the purposes of subsection (1) .

The guidelines may specify different penalties or methods for different circumstances.

426-195(3)    
A director who is liable to the penalty must not be reimbursed the penalty from the corporation.

Note:

Division 298 in this Schedule contains machinery provisions for administrative penalties.

Defences for directors

426-195(4)    
Subsection (1) does not apply to a director if:

(a)    the director was not aware of the holding out mentioned in paragraph (1)(a) , (b) or (c) (whichever applicable) and it would not have been reasonable to expect the director to have been aware of that holding out; or

(b)    the director took all reasonable steps to ensure that the holding out mentioned in that paragraph did not occur; or

(c)    there were no such steps that the director could have taken.

426-195(5)    
In determining what is reasonable for the purposes of paragraph (4)(a) , (b) or (c) , have regard to all relevant circumstances.

426-195(6)    
A person who wishes to rely on subsection (4) bears an evidential burden in relation to the matters in that subsection.

Power of courts to grant relief

426-195(7)    
Section 1318 of the Corporations Act 2001 (power of Court to grant relief in case of breach of director ' s duty) does not apply to a liability of a director under this section.