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 288 - Miscellaneous administrative penalties  

SECTION 288-120   PROHIBITED OFFSETS OF LIABILITIES USING INTEREST ETC. ACCRUED ON FARM MANAGEMENT DEPOSITS  

288-120(1)    
The person who made or is making a *farm management deposit is liable to an administrative penalty if:

(a) the fact that the person made or is making the deposit is the reason why, or one of the reasons why, an amount of interest payable to the *FMD provider in respect of loans or other debts falls short of what it would otherwise be; and

(b) the shortfall:

(i) contravenes a requirement, contained in the agreement mentioned in paragraph 393-20(1)(b) of the Income Tax Assessment Act 1997 in relation to the deposit, as set out in item 8 of the table in section 393-35 of that Act; or

(ii) would contravene such a requirement if it were contained in that agreement.

288-120(2)    
The amount of the penalty is 200% of so much of the shortfall as contravenes that requirement, or would contravene such a requirement.