Taxation Administration Act 1997

The amount of penalty tax determined under section 30 is to be increased by 20% if, after the Commissioner commences an investigation into a known or suspected tax default or notification default by the taxpayer and before the investigation is completed, the taxpayer took steps to prevent or hinder the Commissioner from becoming aware of the nature and extent of the default in whole or part.

For the purposes of this section, a taxpayer takes steps to prevent or hinder the Commissioner if the taxpayer—

deliberately damages or destroys records required to be kept under the taxation law to which the investigation relates; or

without reasonable excuse, refuses or fails to comply with a requirement made by the Commissioner under Division 2 of Part 9 for the purposes of determining the taxpayer's tax liability; or

hinders or obstructs an authorised officer exercising functions under that Division for that purpose.