Taxation Administration Act 1953

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

Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules  

PART 4-25 - CHARGES AND PENALTIES  

Division 284 - Administrative penalties for statements, unarguable positions and schemes  

Subdivision 284-C - Penalties relating to schemes  

Operative provisions

SECTION 284-145   LIABILITY TO PENALTY  

284-145(1)    
You are liable to an administrative penalty if:

(a) you would, apart from a provision of a *taxation law or action taken under such a provision (the adjustment provision ), get a *scheme benefit from a *scheme; and

(b) having regard to any relevant matters, it is reasonable to conclude that:

(i) an entity that (alone or with others) entered into or carried out the scheme, or part of it, did so with the sole or dominant purpose of that entity or another entity getting a scheme benefit from the scheme; or

(ia) for a scheme to which Part IVA of the Income Tax Assessment Act 1936 applies because of section 177DA of that Act - an entity that (alone or with others) entered into or carried out the scheme, or part of it, did so for a principal purpose of, or for more than one principal purpose that includes a purpose of, that entity or another entity getting a scheme benefit from the scheme; or

(ii) for a scheme referred to in Division 165 of the *GST Act or Division 75 of the Fuel Tax Act 2006 - the principal effect of the scheme, or of part of the scheme, is that you would, apart from the adjustment provision, get the scheme benefit from the scheme directly or indirectly.

284-145(2)    
(Repealed by No 101 of 2013)

284-145(2A)    

You are also liable to an administrative penalty if:

(a) you would, apart from a determination under section 815-30 of the Income Tax Assessment Act 1997 (also the adjustment provision ), get a *scheme benefit from a *scheme; and

(b) neither subparagraph (1)(b)(i) nor subparagraph (1)(b)(ia) is satisfied for the scheme.

284-145(2B)    

You are also liable to an administrative penalty if:

(a) to give effect to Subdivision 815-B or 815-C of the Income Tax Assessment Act 1997 (also the adjustment provision ) in relation to a * scheme, the Commissioner:

(i) amends your assessment for an income year; or

(ii) serves you with one or more notices under subsection 128C(7) of the Income Tax Assessment Act 1936 in respect of income that is taken because of the application of the adjustment provision to have been derived in the income year; and

(b) as a result, you are liable to pay an additional amount of income tax or * withholding tax (as the case requires).

Note:

Subdivisions 815-B and 815-C of the Income Tax Assessment Act 1997 apply the arm ' s length principle (about transfer pricing) to entities and permanent establishments respectively.

284-145(2C)    

You are also liable to an administrative penalty if:

(a) you are the trustee of a *managed investment trust in relation to an income year; and

(b) to give effect to Subdivision 275-L of the Income Tax Assessment Act 1997 (also the adjustment provision ) in relation to a *scheme, the Commissioner amends your assessment for the income year; and

(c) as a result, you are liable to pay an additional amount of income tax (as the case requires).

Note:

Subdivision 275-L of the Income Tax Assessment Act 1997 applies to non-arm ' s length income of managed investment trusts.

284-145(3)    
It does not matter whether the *scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.