Treasury Laws Amendment (Tax Accountability and Fairness) Act 2024 (37 of 2024)

Schedule 1   PwC response - Promoter penalty law reform

Taxation Administration Act 1953

16   Subsection 290-50(4) in Schedule 1

Repeal the subsection, substitute:

Amount of penalty

(4) The maximum amount of the penalty for a contravention by an entityis the greater of:

(a) 5,000 penalty units; and

(b) 3 times the total value of allbenefitsreceived or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme.

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

(4A) Despite subsection (4), the maximum amount of the penalty for a contravention by an entity that is a body corporate is the greatest of the following:

(a) 50,000 penalty units;

(b) 3 times the total value of allbenefitsreceived or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme;

(c) either:

(i) 10% of the *aggregated turnover of the entity for the most recent income year to end before the entity contravened, or began to contravene, the provision; or

(ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units - 2.5 million penalty units.

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

(4B) Despite subsections (4) and (4A), the maximum amount of the penalty for a contravention by an entity that is:

(a) a partner in a partnership that is a *significant global entity; or

(b) a trustee of a trust that is a significant global entity;

is the greatest of the following:

(c) 50,000 penalty units;

(d) 3 times the total value of allbenefitsreceived or receivable (directly or indirectly) by the significant global entity and *associates of the significant global entity in respect of the *scheme;

(e) either:

(i) 10% of the *aggregated turnover of the significant global entity for the most recent income year to end before the entity contravened, or began to contravene, the provision; or

(ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units - 2.5 million penalty units.

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