Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 (101 of 2013)

Base penalty amount

Item

Column 1

In this situation:

Column 2

The base penalty amount is:

1

having regard to any relevant matters, it is reasonable to conclude that an entity that (alone or with others) entered into or carried out the *scheme, or part of it, did so with the sole or dominant purpose of that entity or another entity getting a *transfer pricing benefit from the scheme

the sum of:

(a) 50% of your *scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and

(b) 25% of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity's agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is *reasonably arguable

2

item 1 does not apply

the sum of:

(a) 25% of your *scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and

(b) 10% of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity's agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is *reasonably arguable