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 284 - Administrative penalties for statements, unarguable positions and schemes  

Subdivision 284-C - Penalties relating to schemes  

Operative provisions

SECTION 284-150   SCHEME BENEFITS AND SCHEME SHORTFALL AMOUNTS  

284-150(1)    
An entity gets a scheme benefit from a *scheme if:

(a) a *tax-related liability of the entity for an accounting period is, or could reasonably be expected to be, less than it would be apart from the scheme or a part of the scheme; or

(b) an amount that the Commissioner must pay or credit to the entity under a *taxation law for an accounting period is, or could reasonably be expected to be, more than it would be apart from the scheme or a part of the scheme.

284-150(2)    
The amount of the *scheme benefit that you would, apart from the adjustment provision, have got from the *scheme is called your scheme shortfall amount .

284-150(3)    

However, to the extent that your scheme shortfall amount is due to errors mentioned in section 705-315 of the Income Tax Assessment Act 1997 that were made in a statement that was made before the Commissioner became aware of the errors, your scheme shortfall amount is instead the amount worked out using the formula:

where:

adjusted reset cost base asset setting amount
means:

(a) the *tax cost setting amount, worked out under Division 705 of the Income Tax Assessment Act 1997 , for all assets of a kind referred to in section 705-35 of that Act as reset cost base assets that the *head company of the relevant group held continuously from the time when the *subsidiary member referred to in subsection 705-315(2) of that Act joined the group until the start of the head company ' s income year in which the Commissioner became aware of the errors mentioned in section 705-315 of that Act;

less:

(b) the head company ' s deductions under Division 40 (except under Subdivision 40-F , 40-G , 40-H or 40-I ) or Subdivision 328-D of the Income Tax Assessment Act 1997 for those assets for all income years before the income year in which the Commissioner became aware of the errors.

capital gain
(Repealed by No 107 of 2003)

original reset cost base asset setting amount
means the *tax cost setting amount, worked out under Division 705 of the Income Tax Assessment Act 1997 , for all reset cost base assets that the *subsidiary member held at the joining time, other than assets that the *head company no longer held at the start of the earliest income year for which the Commissioner could amend the head company ' s assessment to correct any of the errors.

tax on capital gain
means the product of:

(a) the *capital gain that the *head company makes as a result of *CGT event L6 happening as mentioned in section 104-525 of the Income Tax Assessment Act 1997 ; and

(b) the *corporate tax rate in respect of taxable income for the income year in which that CGT event happens.

Scheme shortfall amount for cross-border transfer pricing

284-150(4)    

Despite subsection (2), your scheme shortfall amount for a * scheme to which subsection 284-145(2B) applies is the total amount of additional income tax and * withholding tax you are liable to pay as mentioned in that subsection.

284-150(5)    

Disregard your * scheme shortfall amount for a * scheme to which subsection 284-145(1) applies to the extent that scheme shortfall amount is attributable to additional tax that is, or is part of, your scheme shortfall amount for a scheme to which subsection 284-145(2B) applies.

Scheme shortfall amount for managed investment trust non-arm ' s length income

284-150(6)    

Despite subsection (2), your scheme shortfall amount for a *scheme to which subsection 284-145(2C) applies is the total amount of additional income tax you are liable to pay as mentioned in that subsection.

284-150(7)    

Disregard your *scheme shortfall amount for a *scheme to which subsection 284-145(1) applies to the extent that scheme shortfall amount is attributable to additional tax that is, or is part of, your scheme shortfall amount for a scheme to which subsection 284-145(2C) applies.