Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (53 of 2016)
Schedule 1 Attribution managed investment trusts
Taxation Administration Act 1953
4 At the end of Division 288 in Schedule 1
Add:
288-115 AMIT under or over resulting from intentional disregard of or recklessness as to taxation law
(1) An entity is liable to an administrative penalty if:
(a) the entity is a trustee of an *AMIT for an income year (the base year ); and
(b) the AMIT has an *under or *over for the base year; and
(c) at least one of the items in the table in subsection (3) applies in respect of the under or over.
(2) To avoid doubt, subsection (1) has a separate operation in respect of each *under or *over mentioned in paragraph (1)(b).
(3) The amount of the penalty is 47% of the amount worked out using this table:
|
Amount of penalty |
|||
|---|---|---|---|
|
Item |
Column 1
|
Column 2
|
Column 3
|
|
1 |
if the *under or *over resulted from intentional disregard of a *taxation law (other than the *Excise Acts) by the trustee of the *AMIT or the trustee's agent |
75% of the under or over |
30% of the under or over |
|
2 |
if the *under or *over resulted from recklessness by the trustee of the *AMIT or the trustee's agent as to the operation of a *taxation law (other than the *Excise Acts) |
50% of the under or over |
20% of the under or over |
(4) Despite subsection (3):
(a) if the penalty specified under column 3 of item 1 of the table in that subsection is less than 60 penalty units - the amount of the penalty is 60 penalty units; and
(b) if the penalty specified under column 3 of item 2 of the table in that subsection is less than 40 penalty units - the amount of the penalty is 40 penalty units.
(5) This subsection covers the following:
(a) an *under of:
(i) a character relating to assessable income; or
(ii) a character relating to *exempt income; or
(iii) a character relating to *non-assessable non-exempt income;
(b) an *over of a character relating to a *tax offset.
(6) This subsection covers the following:
(a) an *over of:
(i) a character relating to assessable income; or
(ii) a character relating to *exempt income; or
(iii) a character relating to *non-assessable non-exempt income;
(b) an *under of a character relating to a *tax offset.
(7) If both items in the table in subsection (3) apply, use item 1 and not item 2.
(8) If the income year corresponds to a financial year that is a temporary budget repair levy year (within the meaning of section 4-11 of the Income Tax (Transitional Provisions) Act 1997), treat the reference in subsection (3) to 47% as instead being a reference to 49%.