Civil penalties

Heading: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).

139A Late filing penalty for certain returns

(1)

This section applies to tax returns required to be furnished under sections 33, 41 to 44, and 79 (in this Part, annual tax returns), the annual ICA return required to be furnished under section 69(1) and (2)(a) by an Australian ICA company that is not required to furnish a return of income for a tax year, the reconciliation statement required to be provided under regulation 3 of the Accident Rehabilitation and Compensation Insurance (Earnings Definitions) Regulations 1992 or regulation 15 of the Accident Insurance (Premium Payment Procedures) Regulations 1999 or any successor to that regulation made under the Accident Compensation Act 2001, the statement required to be provided under section 54B of this Act, and the employment income information required to be provided under sections 23E to 23J.

(2)

A taxpayer is liable to pay a late filing penalty if—

(a)

the taxpayer does not complete and provide on time—

(i)

an annual tax return:

(ii)

an annual ICA return required to be furnished under section 69(1) and (2)(a):

(iii)

a reconciliation statement:

(iiib)

a return required to be furnished under section 57B:

(iiic)

a statement for payment of RLWT required to be provided under section 54B:

(iv)

their employment income information; and

(b)

the Commissioner notifies the taxpayer that the penalty is payable.

(3)

The late filing penalty for an annual tax return for a taxpayer with net income—

(a)

below $100,000, is $50;

(b)

between $100,000 and $1,000,000 (both figures inclusive), is $250;

(c)

above $1,000,000, is $500.

(4)

The late filing penalty for an annual ICA return or reconciliation statement or employment income information or statement for RLWT is $250.

(5)

Except in the case of a late filing penalty resulting from employment income information or from a tax return required under sections 16 to 18 of the Goods and Services Tax Act 1985, the Commissioner must, not less than 30 days before imposing a late filing penalty,—

(a)

send notice to a taxpayer that a late filing penalty may be imposed if a return specified in the notice is not filed; or

(b)

publicly notify that a late filing penalty may be imposed on taxpayers who omit to file the required return.

(6)

Subsections (7) to (9) apply in relation to a late filing penalty when a taxpayer fails to provide employment income information to the Commissioner by a due date when, for the 12-month period before the due date, the taxpayer has delivered on time all the required income information.

(7)

Subject to subsection (9), the Commissioner must notify the taxpayer,—

(a)

first, that a late filing penalty will be payable for a further failure to provide income information on time:

(b)

secondly, that the penalty is payable when a further failure occurs after the notice referred to in paragraph (a) has been given.

(8)

For employment income information, the maximum penalty that may be imposed in relation to a month, regardless of the number of failures to provide employment income information, is $250.

(9)

Despite subsection (7), a taxpayer is not liable to pay a late filing penalty in relation to employment income information if the Commissioner considers that, in a particular case or class of cases, a penalty should not be imposed. However, the Commissioner’s discretion may be exercised only if—

(a)

it is necessary because of resource constraints imposed on the Commissioner during the period of co-existence of 2 Inland Revenue software platforms; and

(b)

the taxpayer’s non-compliance is not serious or unreasonable.

(10)

Despite subsection (2)(a)(i), a taxpayer is not liable to pay a late filing penalty if the Commissioner considers that, in a particular case or class of cases, a penalty should not be imposed. However the Commissioner’s discretion may be exercised only if—

(a)

it is necessary because of resource constraints imposed on the Commissioner during the period of co-existence of 2 Inland Revenue software platforms; and

(b)

the taxpayer’s non-compliance is not serious or unreasonable.

Section 139A: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).

Section 139A heading: amended (with effect on 1 April 1999), on 19 December 2007 (applying for employer monthly schedules due on or after 1 April 1999), by section 241(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 139A(1): replaced, on 7 October 1998 (applying to an employer monthly schedule and a reconciliation statement in relation to tax deductions from source deduction payments made on or after 1 April 1999 and annual tax returns for 1999–2000 and subsequent income years), by section 32(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).

Section 139A(1): amended, on 1 April 2019, by section 352(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(1): amended, on 1 July 2016, by section 82(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 139A(1): amended, on 3 March 2010, pursuant to section 5(1)(b) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Section 139A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 139A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 139A(1): amended (with effect on 1 April 2003), on 25 November 2003, by section 128(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 139A(1): amended, on 1 April 2002, by section 338 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).

Section 139A(2)(a): replaced (with effect on 1 April 2003), on 25 November 2003, by section 128(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 139A(2)(a)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 139A(2)(a)(iiib): inserted, on 1 October 2007, by section 198 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).

Section 139A(2)(a)(iiic): inserted, on 1 July 2016, by section 82(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 139A(2)(a)(iv): amended, on 1 April 2019, by section 352(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(4): replaced, on 7 October 1998 (applying to an employer monthly schedule and a reconciliation statement in relation to tax deductions from source deduction payments made on or after 1 April 1999 and annual tax returns for 1999–2000 and subsequent income years), by section 32(3) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).

Section 139A(4): amended, on 1 April 2019, by section 352(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(4): amended, on 1 July 2016, by section 82(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 139A(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 139A(4): amended (with effect on 1 April 2003), on 25 November 2003, by section 128(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 139A(5): inserted, on 23 September 1997, by section 89 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 139A(5): amended, on 1 April 2019, by section 352(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(5): amended, on 1 April 2008 (applying for a tax return required to be furnished under sections 16–18 of the Goods and Services Tax Act 1985 and due on or after 1 April 2008), by section 241(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 139A(5)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 139A(6): replaced, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(7): inserted, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(8): inserted, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(9): inserted, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section 139A(10): inserted, on 1 April 2019, by section 94 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).