TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994 - SECT 86 Period allowed for furnishing amended returns without incurring penalty

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994 - SECT 86

86. (1) If:

   (a)  a taxpayer furnished a return of income before the commencement of
        this section; and

   (b)  the return included a claim for a deduction under Division 8 or 8A of
        the Principal Act; and

   (c)  when the return was made it was reasonably arguable that the deduction
        was allowable under that Division; and

   (d)  that deduction is taken by the Principal Act as amended by this
        Division not to have been allowable; and

   (e)  within 6 months (or such further period as the Commissioner allows)
        after the day on which this Act received the Royal Assent the taxpayer
        furnishes an amended return that does not include a claim for the
        deduction; no penalty is payable by the taxpayer because of the claim
        for the deduction but the Income Tax (Interest on Underpayments) Act
        1986 applies in respect of any underpayment of tax as a result of any
        increase in tax that is payable because the deduction is not
        allowable.

(2) The question whether a matter was reasonably arguable as mentioned in
paragraph (1)(c) is to be determined in the same way as the question would be
determined under section 222C of the Income Tax Assessment Act 1936 if that
section were applicable.