Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (53 of 2016)

Schedule 1 Attribution managed investment trusts

Taxation Administration Act 1953

4 At the end of Division 288 in Schedule 1

Add:

288-115 AMIT under or over resulting from intentional disregard of or recklessness as to taxation law

(1) An entity is liable to an administrative penalty if:

(a) the entity is a trustee of an *AMIT for an income year (the base year ); and

(b) the AMIT has an *under or *over for the base year; and

(2) To avoid doubt, subsection (1) has a separate operation in respect of each *under or *over mentioned in paragraph (1)(b).

(3) The amount of the penalty is 47% of the amount worked out using this table:

Amount of penalty
Item	Column 1 In this situation …	Column 2 in the case of an * under or * over covered by subsection (5), the amount is:	Column 3 in the case of an * under or * over covered by subsection (6), the amount is:
1	if the under or over resulted from intentional disregard of a taxation law (other than the Excise Acts) by the trustee of the *AMIT or the trustee's agent	75% of the under or over	30% of the under or over
2	if the under or over resulted from recklessness by the trustee of the AMIT or the trustee's agent as to the operation of a taxation law (other than the *Excise Acts)	50% of the under or over	20% of the under or over

Amount of penalty

Item

Column 1
In this situation …

Column 2
in the case of an * under or * over covered by subsection (5), the amount is:

Column 3
in the case of an * under or * over covered by subsection (6), the amount is:

if the *under or *over resulted from intentional disregard of a *taxation law (other than the *Excise Acts) by the trustee of the *AMIT or the trustee's agent

75% of the under or over

30% of the under or over

if the *under or *over resulted from recklessness by the trustee of the *AMIT or the trustee's agent as to the operation of a *taxation law (other than the *Excise Acts)

50% of the under or over

20% of the under or over

(4) Despite subsection (3):

(a) if the penalty specified under column 3 of item 1 of the table in that subsection is less than 60 penalty units - the amount of the penalty is 60 penalty units; and

(b) if the penalty specified under column 3 of item 2 of the table in that subsection is less than 40 penalty units - the amount of the penalty is 40 penalty units.

(5) This subsection covers the following:

(a) an *under of:

(i) a character relating to assessable income; or

(ii) a character relating to *exempt income; or

(iii) a character relating to *non-assessable non-exempt income;

(b) an *over of a character relating to a *tax offset.

(6) This subsection covers the following:

(a) an *over of:

(i) a character relating to assessable income; or

(ii) a character relating to *exempt income; or

(iii) a character relating to *non-assessable non-exempt income;

(b) an *under of a character relating to a *tax offset.

(7) If both items in the table in subsection (3) apply, use item 1 and not item 2.

(8) If the income year corresponds to a financial year that is a temporary budget repair levy year (within the meaning of section 4-11 of the Income Tax (Transitional Provisions) Act 1997), treat the reference in subsection (3) to 47% as instead being a reference to 49%.

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