Taxation Administration Act 1953

The person who made or is making a *farm management deposit is liable to an administrative penalty if:

the fact that the person made or is making the deposit is the reason why, or one of the reasons why, an amount of interest payable to the *FMD provider in respect of loans or other debts falls short of what it would otherwise be; and

the shortfall:

contravenes a requirement, contained in the agreement mentioned in paragraph 393‑20(1)(b) of the Income Tax Assessment Act 1997 in relation to the deposit, as set out in item 8 of the table in section 393‑35 of that Act; or

would contravene such a requirement if it were contained in that agreement.

The amount of the penalty is 200% of so much of the shortfall as contravenes that requirement, or would contravene such a requirement.