Administrative penalty if relinquishment requirements not complied with
22XNI Administrative penalty if relinquishment requirements not complied with
Scope
This section applies if:
a person is required under section 22XNE or 22XNF to relinquish a particular number of relinquishable units; and
the person is required to do so by a particular time (the compliance deadline).
No units relinquished
If, by the compliance deadline, the person has not relinquished any units in order to comply with the requirement, the person is liable to pay to the Commonwealth, by way of penalty, an amount worked out using the formula:
Start formula Number of units required to be relinquished times Prescribed amount end formula
where:
prescribed amount means the greater of the following amounts:
$20;
200% of the market value of a safeguard mechanism credit unit as at the compliance deadline.
Relinquishment of insufficient units
If, by the compliance deadline:
the person has relinquished one or more units in order to comply with the requirement; and
the number of units is less than the number of units required to be relinquished;
the person is liable to pay to the Commonwealth, by way of penalty, an amount worked out using the formula:
Start formula open bracket Number of units required to be relinquished minus Number of relinquished units close bracket times Prescribed amount end formula
where:
prescribed amount means the greater of the following amounts:
$20;
200% of the market value of a safeguard mechanism credit unit as at the compliance deadline.
When penalty becomes due and payable
An amount payable under this section is due and payable at the end of 30 days after the compliance deadline.
Compliance
To avoid doubt, a person may be liable to pay a penalty under this section even if:
the person is not the registered holder of any relinquishable units; or
the person is not the registered holder of the number of relinquishable units required to be relinquished.
Market value
The safeguard rules may provide that, for the purposes of this section, the market value of a safeguard mechanism credit unit is to be ascertained in accordance with those rules.
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