Taxation Laws Amendment Act (No. 2) 1993 (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 8   Amendments relating to the payment of instalments by companies and certain trustees

Subdivision B   Application and transitional

57   Penalty if taxpayer classified as large for 1994-95 year on basis of excessive estimate
 

(1) A taxpayer is liable to pay a penalty under this section in respect of an estimate lodged by the taxpayer for the 1994-95 year of income if:

(a) the taxpayer is classified as large for the 1994-95 year of income only because of the estimate; and

(b) the estimated amount turns out to be more than 10% above the taxpayer's net tax for the 1994-95 year of income.

      

(2) The amount of the penalty is 16% of the difference between the estimated amount and the net tax.

      

(3) Section 221AZI of the amended Act applies for the purposes of this section.

      

(4) Penalty under this section is to be treated as tax for the purposes of sections 208, 209, 214, 254, 255, 258 and 259 of the amended Act.

      

(5) In this section:

"net tax" means the tax payable after deducting the following amounts:

(a) credits under subsection 98A (2), Division 18 of Part III or Division 3A of Part VI of the amended Act, or under the Income Tax (International Agreements) Act 1953;

(b) offsets under section 160AQK of the amended Act.


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