INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 11 - Additional tax by way of penalty  

SECTION 160ARY   PENALTY FOR SETTING OUT INCORRECT AMOUNTS IN DIVIDEND STATEMENTS  

160ARY(1)   [Amount of penalty]  

Where:

(a) a person (in this section called the ``first person'' ) gives to a shareholder in a company a dividend statement that is reasonably likely to cause the shareholder to believe that:

(i) if section 160AQT were to apply to the shareholder, an amount would be included in the assessable income of the shareholder under this Part because of the payment of the dividend; or

(ii) if section 160AQU or 160ASEP were to apply to the shareholder, the shareholder would be entitled to a rebate of tax under this Part because of the payment of the dividend; and

(b) if section 160AQT or section 160AQU or 160ASEP , as the case may be, were to apply to the shareholder:

(i) the amount that would be included in the assessable income of the shareholder under section 160AQT because of the payment of the dividend would be greater than the amount referred to in subparagraph (a)(i) of this subsection; or

(ii) the rebate to which the shareholder would be entitled under section 160AQU or 160ASEP because of the payment of the dividend would be less than the amount of the rebate referred to in subparagraph (a)(ii) of this subsection;

the first person is liable to pay, by way of penalty, additional tax equal to:

(c) if subparagraph (a)(i) applies - half of the amount of the excess referred to in subparagraph (b)(i); or

(d) if subparagraph (a)(ii) applies - the amount of the shortfall referred to in subparagraph (b)(ii).

160ARY(2)   [Interpretation]  

For the purposes of this section:

(a) a nil amount shall be taken to be an amount; and

(b) a reference to a dividend statement includes a reference to a document purporting to be a dividend statement.

160ARY(3)   [Effect of section]  

In addition to its effect apart from this subsection, this section also has the effect that it would have if section 160AQUA had not been enacted.