Increase in penalty tax for concealment
34 Increase in penalty tax for concealment
The amount of penalty tax payable in relation to a tax default is 90% of the amount of tax unpaid if the commissioner is satisfied that, after the commissioner has informed the taxpayer that an investigation is to be carried out and before the investigation is completed, the taxpayer (or a person acting on behalf of the taxpayer)—
deliberately damages or destroys records required to be kept under the tax law to which the investigation relates; or
fails, without reasonable excuse, to comply with a requirement made by the commissioner under division 9.2 for the purposes of determining the taxpayer’s tax liability; or
hinders or obstructs an authorised officer exercising functions under division 9.2, or an authorised valuer exercising functions under division 9.2A, for the purposes of determining the taxpayer’s liability; or
otherwise shows intentional disregard for a tax law.
The Legislation Act, dict, pt 1 defines fail to include refuse.
The commissioner’s decision to impose increased penalty tax is an internally reviewable decision (see s 107, def internally reviewable decision), and the commissioner must give an internal review notice to the taxpayer (see s 107B).
Table 34 contains a summary of the effect of s 31 to s 34.
Table 34 Rates of penalty tax column 1 item column 2
column 3
column 4
basic rate
reduced rate
voluntary disclosure
disclosure before investigation
1 taxpayer took reasonable care
0%
0%
0%
2 circumstances beyond taxpayer’s control
0%
0%
0%
basic rate
reduced rate
voluntary disclosure
disclosure before investigation
3 tax default
25%
5%
20%
4
delayed payment of tax
delayed provision of information
provided incorrect, incomplete or misleading information
second or subsequent tax default
50%
10%
40%
5 intentional disregard of tax law
75%
15%
60%
6 concealment
90%
90%
90%
This Act’s bill:Explanatory statementSecond reading speech
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