On 26 June 2014 the ATO released a draft practice statement on the administration of the penalty imposed under s 284-75(3) of Schedule 1 to the Taxation Administration Act 1953: draft PS LA 3624 "Administration of the penalty imposed under subsection 284-75(3) of Schedule 1 to the Taxation Administration Act 1953".
This practice statement explains the circumstances in which an entity becomes liable to a s 284-75(3) penalty, and how the penalty is assessed, including remission.
An entity is liable to an administrative penalty under s 284-75(3) where:
- the entity fails to lodge a return, notice or other document by the due date for lodgment, and
- the return, notice or other document is necessary for the Commissioner to accurately determine a tax-related liability of the entity, and
- the Commissioner determines the tax-related liability without the assistance of that document.
The ATO invites comments on this practice statement. The closing date for comments is 23 July 2014.