Taxation Administration Act 1953 (Cth) s284-75: s 284-75 Liability to penalty for false or misleading statements, and for failing to lodge a required document

An entity is liable to an administrative penalty if it makes a statement to the Commissioner or another entity that is false or misleading in a material particular, or that treats a taxation law as applying in a way that is not reasonably arguable, and the statement results in a shortfall amount (s 284-75(1), (2)). An entity is also liable to a penalty, set at 75% of the tax-related liability, if it fails to lodge a return, notice or other document necessary for the Commissioner to accurately determine a tax-related liability by the due date, and the Commissioner determines that liability without the document (s 284-75(3)). Per PS LA 2014/4 (ATO guidance read in full this run), the Commissioner's administration of the s 284-75(3) penalty considers the entity's understanding of its lodgment obligation, whether circumstances beyond the entity's control caused the failure, whether the outcome would otherwise be unjust, credits available to offset the liability, and the entity's cooperation during the examination, each of which the Commissioner documents when assessing or remitting the penalty.