Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)

Schedule 3   Fringe benefits tax

Part 1   Amendment of the Fringe Benefits Tax Assessment Act 1986

3   After section 115A

Insert:

115B Penalty tax for making unreasonable estimate of income

If:

(a) under subsection 58GA(2), an employer makes an estimate of an amount; and

(b) the amount of the estimate is less than $10 million; and

(c) the estimate is not a reasonable estimate;

then:

(d) the Commissioner may make a reasonable estimate of that amount (taking into account the assumption in paragraph 58GA(2)(e)); and

(e) if the amount of that reasonable estimate is $10 million or more - the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the tax payable in respect of the benefit.