INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VII - PENALTY TAX  

SECTION 222C   REASONABLY ARGUABLE  

222C(1)   [Regard to relevant authorities]  

For the purposes of this Part:

(a) the correctness of the treatment of the application of a law; or

(b) another matter;

is reasonably arguable if, having regard to the relevant authorities and the matter in relation to which the law is applied or the other matter, it would be concluded that what is argued for is about as likely as not correct.

222C(2)   [Assumption re Commissioner's discretion]  

For the purposes of this Part, if the treatment of the application of a law assumed that the Commissioner would exercise a discretion in a particular way, the correctness of the treatment is reasonably arguable, in so far as it consisted of the assumption, if the exercise by the Commissioner of the discretion in that way would be reasonably arguably in accordance with law.

222C(3)   [Court's decision]  

For the purposes of this Part, the exercise, or assumed exercise, by the Commissioner of a discretion is reasonably arguably in accordance with law if, having regard to the relevant authorities and the matter in relation to which the discretion is or would be exercised, it would be concluded that a court would be about as likely as not to hold that the exercise is or would be in accordance with law.

222C(4)   [``authority'']  

In this section:

"authority"
includes:

(a) an income tax law; or

(b) material for the purposes of subsection 15AB(1) of the Acts Interpretation Act 1901 ; or

(c) a decision of a court (whether or not an Australian court), the Tribunal or a Board of Review; or

(d) a public ruling within the meaning of Part IVAAA of the Taxation Administration Act 1953 .

222C(5)   [Commissioner's exercise of discretion]  

For the purposes of this section, the Commissioner exercises a discretion if the Commissioner:

(a) forms an opinion; or

(b) refuses or fails to form an opinion; or

(c) attains a state of mind; or

(d) refuses or fails to attain a state of mind; or

(e) makes a determination; or

(f) refuses or fails to make a determination; or

(g) exercises a power; or

(h) refuses or fails to exercise a power.