Taxation Ruling

IT 2127 (as amended 12/9/85)

Supplementary trust stripping settlement guidelines : sub-section 226(1) penalty

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FOI status:

May be releasedFOI number: I 1122238

PREAMBLE

This ruling is to be read in conjunction with Taxation Rulings Nos. IT 2100, 2106 and 2126.

RULING

2. Where settlement is sought in accordance with the above Taxation Rulings, settlement offers on the basis of remission of sub-section 226(1) additional tax may be accepted.

3. Provided taxpayers seeking to take advantage of the settlement terms, are co-operative and promptly lodge returns and supply any information required, sub-section 226(1) additional tax will be remitted in a manner consistent with the settlement guidelines applicable to the remission of sub-section 226(2) penalty.

4. Where a taxpayer subject to sub-section 226(1) penalty is liable to tax in respect of income which includes non-trust-strip income sufficient, of itself, to require the lodgment of a return, remission of the statutory penalty under this ruling, in a settlement context, will not extend to any part of the penalty based on the non-trust-strip income.

COMMISSIONER OF TAXATION
12 September 1985

AMENDMENT

LEGISLATIVE REFERENCES: 226(1) (repealed), 222.

Amendments to the taxation laws that commenced to apply from 14 December 1984 brought about the repeal of sub-section 226(1) of the Income Tax Assessment Act and, in its place, introduced section 222. Accordingly, a reference to "sub-section 226(1)" in this ruling shall be construed as a reference to "section 222 or sub-section 226(1)."

References

ATO references:
NO J 209/103 P13 F227
BO PER : J 36/243/1 MELB: VJ 192/20 SYD : 13/DIRC/AF 4064/6/2 PARR: A 48/5/18 BRIS: 5/IT.COR 67H ADEL: M 336/4/71 HOB : G3/H32/1/12 ACT : 04/GTA 4/11

Date original memo issued:
26.11.84

Related Rulings/Determinations:

IT 2127H
IT 2127W

Subject References:
INCOME TAX AVOIDANCE
TRUST STRIPPING
SETTLEMENT GUIDELINES

Legislative References:
222