INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 11 - Additional tax by way of penalty  

SECTION 160ARZA  

160ARZA   PENALTY TAX WHERE FRANKING TAX SHORTFALL CAUSED BY LACK OF REASONABLE CARE  
Subject to this Division, if:

(a) a company has a franking tax shortfall for a franking year or a refund; and

(b) the shortfall or part of it was caused by the failure of the company or of a registered tax agent to take reasonable care to comply with this Act or the regulations;

the company is liable to pay, by way of penalty, additional tax equal to 25% of the amount of the shortfall or part.