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 286 - Penalties for failing to lodge documents on time  

Subdivision 286-C - Penalties for failing to lodge documents on time  

SECTION 286-80   AMOUNT OF PENALTY  

286-80(1)    
The amount of the penalty is worked out in this way:

(a) work out the *base penalty amount under subsection (2); and

(b) work out whether the base penalty amount is increased under subsection (3), (4) or (4A).

286-80(2)    

The base penalty amount is:

(a) for failing to give a return, notice or other document on time or in the *approved form, as mentioned in subsection 286-75(1) , (2AA) , (2AB) , (2A) , (2B) , (2BA) or (2C) - 1 penalty unit for each period of 28 days or part of a period of 28 days starting on the day when the document is due and ending when you give it (up to a maximum of 5 penalty units); or

(b) (Repealed by No 93 of 2011)

(c) for failing to notify the happening of an event as mentioned in subsection 286-75(4) - 1 penalty unit for each period of 28 days or part of a period of 28 days starting on the day when the notification is due and ending when you notify the happening of the event (up to a maximum of 5 penalty units).

Note:

See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Example:

An entity lodges a return 31 days late. The base penalty amount under subsection (2) is 2 penalty units.

286-80(3)    
The *base penalty amount is multiplied by 2 if:

(a) the entity concerned is a *medium withholder for the month in which the return, notice or other document was required to be given; or

(b) the entity ' s assessable income for the income year in which the return, notice or other document is required to be given is more than $1 million but less than $20 million; or

(c) the entity ' s *current GST turnover worked out at a time in the month in which the return, notice or other document was required to be given is more than $1 million but less than $20 million.

286-80(4)    
The *base penalty amount is multiplied by 5 if:

(a) the entity concerned is a *large withholder for the month when the return, notice or other document was required to be given; or

(b) the entity ' s assessable income for the income year in which the return, notice or other document is required to be given is $20 million or more; or

(c) the entity ' s *current GST turnover worked out at a time in the month in which the return, notice or other document was required to be given is $20 million or more.

286-80(4A)    

Neither subsection (3) nor (4) applies to the entity, and the *base penalty amount is multiplied by 500, if:

(a) the failure referred to in subsection (2) is a failure to give a return, notice or other document on time or in the *approved form, as mentioned in subsection 286-75(1) ; and

(b) on or before the day the return, notice or other document is required to be given:

(i) the Commissioner has made an assessment of the entity ' s income tax for one or more income years; or

(ii) the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to the entity, or in relation to the *global parent entity for the group of which the entity is a member, for a period; or

(iii) the entity has given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; or

(iv) the entity was a *subsidiary member of a *consolidated group or a *MEC group for one or more income years, and the Commissioner has made an assessment of the income tax of another entity that was a *member of the group for one or more of those income years; and

(c) the entity was a *significant global entity for:

(i) whichever of those income years or periods that ends on the most recent day; or

(ii) if more than one of them ends on that most recent day - any of those income years or periods that ends on that most recent day.

Note:

For subparagraph (b)(iii), an entity may be allowed to give statements for a 12 month period other than an income year (see section 815-360 of the Income Tax Assessment Act 1997 ).

286-80(4B)    

However, subsection (4A) is taken never to have applied to the entity in relation to the day the return, notice or other document is required to be given if:

(a) the Commissioner makes an assessment of:

(i) the entity ' s income tax for the income year that includes that day; or

(ii) if the entity was a *subsidiary member of a *consolidated group or a *MEC group for the income year that includes that day - the income tax, for that income year, of another *member of that group; and

(b) the entity is not a *significant global entity for that income year.

286-80(5)    
In working out the *base penalty amount, the amount of a penalty unit is the amount applying at the start of the relevant 28 day period.

286-80(6)    

The fact that you have not yet given the relevant return, notice or other document does not prevent the Commissioner notifying you that you are liable to an administrative penalty under this Subdivision. That penalty may be later increased under this section.

Note:

The Commissioner is required to notify you of an administrative penalty: see section 298-10 .