Australian Capital Territory Consolidated Acts

TAXATION ADMINISTRATION ACT 1999 - SECT 34

The amount of penalty tax payable in relation to a tax default is 90% of the amount of tax unpaid if the commissioner is satisfied that, after the commissioner has informed the taxpayer that an investigation is to be carried out and before the investigation is completed, the taxpayer (or a person acting on behalf of the taxpayer)—

        (a)     deliberately damages or destroys records required to be kept under the tax law to which the investigation relates; or

        (b)     fails, without reasonable excuse, to comply with a requirement made by the commissioner under division 9.2 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; or

        (d)     otherwise shows intentional disregard for a tax law.

Note 1     The Legislation Act, dict, pt 1 defines fail to include refuse.

Note 2     The commissioner's decision to impose increased penalty tax is an internally reviewable decision (see s 107, def internally reviewable decision ), and the commissioner must give an internal review notice to the taxpayer (see s 107B).

Note 3     Table 34 contains a summary of the effect of s 31 to s 34.

Table 34     Rates of penalty tax

column 1 item	column 2	column 3	column 4		column 5
		basic rate	disclosure before investigation begins		intentional disregard for tax law
			before notification	after notification
1	failure to take reasonable care	25%	5%	20%	90%
2	failure to take reasonable care and no reasonable excuse	50%	10%	40%	90%
3	intentional disregard of the law	75%	15%	60%	90%