Increase in penalty tax for concealment
30 Increase in penalty tax for concealment
(1) The amount of penalty tax determined under section 27 is to be increased by 20% if, after the Chief Commissioner has informed the taxpayer that an investigation is to be carried out and before the investigation is completed, the taxpayer took steps to prevent or hinder the Chief Commissioner from becoming aware of the nature and extent of the tax default in whole or part.(2) For the purposes of this section, a taxpayer takes steps to prevent or hinder the Chief Commissioner if the taxpayer—
(a) deliberately damages or destroys records required to be kept under the taxation law to which the investigation relates, or
(b) refuses or fails (without reasonable excuse) to comply with a requirement made by the Chief Commissioner under Division 2 of Part 9 for the purposes of determining the taxpayer’s tax liability, or
(c) hinders or obstructs an authorised officer exercising functions under that Division for that purpose.
Note.
This Table contains a summary of the provisions of sections 27–30.
| Penalty category | Prime rate % | Voluntary disclosure | Concealment or hindrance in establishing underpayment % | |
| Before investigation % | During investigation % | |||
| Failure to take reasonable care but no intentional disregard of the law | 25 | 5 | 20 | 30 |
| Failure to take reasonable care, but no intentional disregard of the law, by significant global entity | 50 | 10 | 40 | 60 |
| Intentional disregard of the law | 75 | 15 | 60 | 90 |
This Act’s bill:Explanatory memorandumSecond reading speech
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