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Schedule 2—Increasing penalties for significant global entities

Schedule 2 Increasing penalties for significant global entities

   

Taxation Administration Act 1953

1  Subsection 3CA(2)

After “give to the Commissioner”, insert “in the approved form”.

2  Subsection 284-90(1) in Schedule 1

After “using this table”, insert “and subsections (1A) to (2),”.

3  After subsection 284-90(1) in Schedule 1

Insert:

          (1A)  The * base penalty amount in an item of the table in subsection (1) that applies to you is taken to be doubled if:

                     (a)  on or before the day (your trigger day ) applying to you under subsection (4) for that table item:

                              (i)  the Commissioner has made an assessment of your income tax for one or more income years; or

                             (ii)  the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to you, or in relation to the * global parent entity for the group of which you are a member, for a period; or

                            (iii)  you have given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and

                     (b)  you were a * significant global entity for:

                              (i)  whichever of those income years or periods that ends on the most recent day; or

                             (ii)  if more than one of them ends on that most recent day—any of those income years or periods that ends on that most recent day.

Note:          For subparagraph (a)(iii), you may be allowed to give statements for a 12 month period other than an income year (see section 815-360 of the Income Tax Assessment Act 1997 ).

          (1B)  However, subsection (1A) is taken never to have applied to you in relation to your trigger day if:

                     (a)  the Commissioner makes an assessment of your income tax for the income year that includes your trigger day; and

                     (b)  you are not a * significant global entity for that income year.

4  At the end of section 284-90 in Schedule 1

Add:

             (4)  For the purposes of paragraph (1A)(a), the following day applies to you for the relevant item of the table in subsection (1):

                     (a)  for any of table items 1 to 3C—the day you made the statement referred to in that item;

                     (b)  for any of table items 4 to 6—the day you made the statement to which that item relates and that is referred to in subsection 284-75(2);

                     (c)  for table item 7—the day the return, notice or other document to which that item relates, and that is referred to in subsection 284-75(3), was required to be given.

5  Paragraph 286-80(1)(b) in Schedule 1

Omit “subsection (3) or (4)”, substitute “subsection (3), (4) or (4A)”.

6  After subsection 286-80(4) in Schedule 1

Insert:

          (4A)  Neither subsection (3) nor (4) applies to the entity, and the * base penalty amount is multiplied by 500, if:

                     (a)  the failure referred to in subsection (2) is a failure to give a return, notice or other document on time or in the * approved form, as mentioned in subsection 286-75(1); and

                     (b)  on or before the day the return, notice or other document is required to be given:

                              (i)  the Commissioner has made an assessment of the entity’s income tax for one or more income years; or

                             (ii)  the Commissioner has made a determination under subsection 960-555(3) of the Income Tax Assessment Act 1997 in relation to the entity, or in relation to the * global parent entity for the group of which the entity is a member, for a period; or

                            (iii)  the entity has given the Commissioner statements in accordance with Subdivision 815-E of that Act for an income year or another 12 month period; and

                     (c)  the entity was a * significant global entity for:

                              (i)  whichever of those income years or periods that ends on the most recent day; or

                             (ii)  if more than one of them ends on that most recent day—any of those income years or periods that ends on that most recent day.

Note:          For subparagraph (b)(iii), an entity may be allowed to give statements for a 12 month period other than an income year (see section 815-360 of the Income Tax Assessment Act 1997 ).

          (4B)  However, subsection (4A) is taken never to have applied to the entity in relation to the day the return, notice or other document is required to be given if:

                     (a)  the Commissioner makes an assessment of the entity’s income tax for the income year that includes that day; and

                     (b)  the entity is not a * significant global entity for that income year.

7  Application of amendments

(1)       The amendment made by item 1 of this Schedule applies in relation to general purpose financial statements required to be given to the Commissioner at or after the application time.

(2)       The amendments made by items 2, 3 and 4 of this Schedule apply in relation to any of the following:

                     (a)  statements referred to in section 284-75 in Schedule 1 to the Taxation Administration Act 1953 that are made at or after the application time;

                     (b)  returns, notices or other documents referred to in that section that are required to be given at or after the application time.

(3)       The amendments made by items 5 and 6 of this Schedule apply in relation to any returns, notices or other documents referred to in subsection 286-75(1) in Schedule 1 to the Taxation Administration Act 1953 that are required to be given at or after the application time.

(4)       In this item:

application time means the start of the day that is the later of:

                     (a)  1 July 2017; and

                     (b)  the day this Schedule commences.