Taxation Administration Act 1996

The Chief Commissioner may impose a penalty on a taxpayer if the Chief Commissioner—

issues a notice of assessment, or reassessment, of tax liability to the taxpayer, and

issues the notice on the basis that a scheme is a tax avoidance scheme.

The penalty—

may be imposed by written notice to the taxpayer, and

must not be more than the amount of tax avoided by the taxpayer.

In deciding whether to impose a penalty and the amount of the penalty, the Chief Commissioner must consider the following—

the amount of tax avoided,

the length of the period during which the person was involved in the tax avoidance scheme,

the deterrent effect the penalty may have,

another matter the Chief Commissioner considers relevant.

The liability to pay the penalty is in addition to the following—

a liability under this division to pay the amount of tax avoided,

a liability under Part 5 to pay interest in relation to the amount of tax avoided,

a liability under Part 5 to pay penalty tax in relation to the amount of tax avoided.