Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 (27 of 2017)

Schedule 2   Increasing penalties for significant global entities

Taxation Administration Act 1953

6   After subsection 286-80(4) in Schedule 1

Insert:

(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; 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).

(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 the entity's income tax for the income year that includes that day; and

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