Taxation Administration Act 1953

The base penalty amount under this Subdivision is worked out using this table and subsections (1A) to (2), and section 284‑224 if relevant:

The *base penalty amount in an item of the table in subsection (1) that applies to you is taken to be doubled if:

on or before the day (your trigger day) applying to you under subsection (4) for that table item:

the Commissioner has made an assessment of your income tax for one or more income years; or

the Commissioner has made a determination under subsection 960‑555(3) of the Income Tax Assessment Act 1997 in relation to you, or in relation to the *global parent entity for the group of which you are a member, for a period; or

you have given the Commissioner statements in accordance with Subdivision 815‑E of that Act for an income year or another 12 month period; or

you were a *subsidiary member of a *consolidated group or a *MEC group for one or more income years, and the Commissioner has made an assessment of the income tax of another entity that was a *member of the group for one or more of those income years; and

you were a *significant global entity for:

whichever of those income years or periods that ends on the most recent day; or

if more than one of them ends on that most recent day—any of those income years or periods that ends on that most recent day.

For subparagraph (a)(iii), you may be allowed to give statements for a 12 month period other than an income year (see section 815‑360 of the Income Tax Assessment Act 1997).

However, subsection (1A) is taken never to have applied to you in relation to your trigger day if:

the Commissioner makes an assessment of:

your income tax for the income year that includes your trigger day; or

if you were a *subsidiary member of a *consolidated group or a *MEC group for the income year that includes your trigger day—the income tax, for that income year, of another *member of that group; and

you are not a *significant global entity for that income year.

The *base penalty amount in an item of the table in subsection (1) that applies to a *Group Entity of an *Applicable MNE Group for a *Fiscal Year is taken to be doubled if the base penalty amount arises in relation to *Australian IIR/UTPR tax or *Australian DMT tax in relation to the Applicable MNE Group.

If 2 or more items in that table apply and one of them produces a greater *base penalty amount than any of the others, use that item.

An entity’s reasonably arguable threshold for an income year is:

unless paragraph (b) applies—the greater of $10,000 or 1% of whichever of the following applies:

the income tax payable by the entity for the income year, worked out on the basis of the entity’s *income tax return;

the *petroleum resource rent tax payable by the entity for the year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987) most closely corresponding to the income year, worked out on the basis of the entity’s return under Division 1 of Part VI of that Act; or

if the entity is a trust or partnership—the greater of the following amounts:

$20,000;

2% of the entity’s *net income (if any) for the income year worked out on the basis of the entity’s *income tax return.

For the purposes of item 6A of the table in subsection (1), an entity’s threshold for a *Fiscal Year is the greater of:

$10,000; and

1% of whichever of the following applies:

the amount of *Australian IIR/UTPR tax payable by the entity for the Fiscal Year, worked out on the basis of the entity’s *Australian IIR/UTPR tax return for the Fiscal Year;

the amount of *Australian DMT tax payable by the entity for the Fiscal Year, worked out on the basis of the entity’s *Australian DMT tax return for the Fiscal Year.

For the purposes of paragraph (1A)(a), the following day applies to you for the relevant item of the table in subsection (1):

for any of table items 1 to 3C—the day you made the statement referred to in that item;

for any of table items 4 to 6A —the day you made the statement to which that item relates and that is referred to in subsection 284‑75(2);

for table item 7—the day the return, notice or other document to which that item relates, and that is referred to in subsection 284‑75(3), was required to be given.