INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 11 - Additional tax by way of penalty  

SECTION 160ARZI  

160ARZI   FURTHER PENALTY TAX  
If:

(a) under a shortfall section, a company is liable to pay additional tax because of a franking tax shortfall or part of a franking tax shortfall; and

(b) one or more of the following applies:

(i) the company took steps to prevent or hinder the Commissioner from becoming aware of the shortfall or part;

(ii) if the shortfall or part was caused otherwise than by the company in a taxation statement treating a franking tax law as applying to the company in relation to a matter in a particular way - the company became aware of the shortfall or part after a taxation statement by the company that was taken into account in working out the company's statement franking tax for the franking year, or the company's statement deficit deferral tax in relation to the refund, and failed to tell the Commissioner about it, in writing, within a reasonable time of becoming so aware;

(iii) if the additional tax is payable under section 160ARZA , 160ARZB or 160ARZC - the company was liable to pay additional tax under any of those sections in respect of an earlier franking year or refund;

(iv) if the additional tax is payable because the company, in a taxation statement, treated a law as applying in relation to a matter in a particular way so that section 160ARZD applied - the company was liable to pay additional tax under that section in respect of an earlier franking year or refund in respect of which the company treated that law as applying in relation to that matter or a similar matter in that way;

the company is liable to pay, by way of penalty, further additional tax equal to 20% of the amount of the additional tax.