Penalty tax not payable if proceeding for offence started
59 Penalty tax not payable if proceeding for offence started
This section applies if a taxpayer is liable to pay penalty tax because of an act or omission of the person.
If a proceeding is started against the taxpayer for an offence against a tax law that is constituted by the act or omission and the penalty tax has not been paid to the commissioner, the penalty tax is payable only if the commissioner withdraws the proceeding.
If the penalty tax has been paid to the commissioner, but a proceeding is started against the person for an offence against a tax law that is constituted by the act or omission, the commissioner must make a reassessment remitting the amount of penalty tax to nil.
Note—See section 18 (When commissioner must make reassessment—general).
Despite subsection (3), if the commissioner withdraws the proceeding for the offence, the commissioner must make a reassessment to reinstate the penalty tax remitted under the subsection.
In this section—penalty tax includes an amount declared under a revenue law to be a penalty tax for this section.
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