Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES

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Note: See section 3AA .

Chapter 4 - Generic assessment, collection and recovery rules

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PART 4-25 - CHARGES AND PENALTIES

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Division 284 - Administrative penalties for statements, unarguable positions and schemes

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Subdivision 284-C - Penalties relating to schemes

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Operative provisions

SECTION 284-160 BASE PENALTY AMOUNT : SCHEMES

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284-160(1)

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The base penalty amount for a * scheme to which subsection 284-145(1) or (2C) applies is, subject to section 284-224 :

(a) 50 % of your * scheme shortfall amount; or

(b) 25 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.

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284-160(2)
The base penalty amount for a * scheme to which subsection 284-145(2A) applies is, subject to section 284-224 :

(a) 25 % of your * scheme shortfall amount; or

(b) 10 % of your scheme shortfall amount if it is * reasonably arguable that the adjustment provision does not apply.

284-160(3)
The base penalty amount for a * scheme to which subsection 284-145(2B) applies is worked out using this table and section 284-224 if relevant:

*Base penalty amount*
Item	Column 1	Column 2
	In this situation:	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

Note:

For special rules about when transfer pricing treatment is not reasonably arguable, see Subdivision 284-E .

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History

S 284-160 substituted by No 101 of 2013, s 3 and Sch 2 item 5, applicable: (a) in respect of tax other than withholding tax - in relation to income years starting on or after the date mentioned in subsection 815-15(2) of the Income Tax (Transitional Provisions) Act 1997 , as inserted; and (b) in respect of withholding tax - in relation to income derived, or taken to be derived, in income years starting on or after that date. S 284-160 formerly read:

SECTION 284-160 BASE PENALTY AMOUNT : SCHEMES
284-160
The base penalty amount for a *scheme is, subject to section 284-224 :

(a) for a scheme to which subsection 284-145(1) applies:

(i) 50% of your *scheme shortfall amount; or

(ii) 25% of your scheme shortfall amount if it is *reasonably arguable that the adjustment provision does not apply; or

(b) for a scheme to which subsection 284-145(2) or (2A) applies:

(i) 25% of your *scheme shortfall amount; or

(ii) 10% of your scheme shortfall amount if it is *reasonably arguable that the adjustment provision does not apply.

S 284-160 amended by No 101 of 2013, s 3 and Sch 2 item 58, by inserting " or (2A) " in para (b), applicable to income years starting on or after 1 July 2012.

S 284-160 amended by No 56 of 2010, s 3 and Sch 6 items 77 and 78, by inserting " , subject to section 284-224 " after " *scheme is " and repealing the note, applicable in relation to things done on or after 4 June 2010. The note formerly read:

Note:

Section 284-215 may reduce or eliminate your scheme shortfall amount.

S 284-160 inserted by No 91 of 2000.

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