INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Subject to this Division, if:
(a) a company has a franking tax shortfall for a franking year or a refund; and
(b) the shortfall or part of it was caused by the failure of the company or of a registered tax agent to take reasonable care to comply with this Act or the regulations;
the company is liable to pay, by way of penalty, additional tax equal to 25% of the amount of the shortfall or part.
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