Shortfall penalty for evasion or a similar act

This interpretation statement (IS) explains the shortfall penalty for evasion or a similar act in s 141E of the Tax Administration Act 1994 (TAA).  The IS explains what is required to satisfy the knowledge requirement, and other requirements, for evasion or a similar act.  The IS also discusses relevant case law and provides several practical examples for clarity.

It updates and replaces IS0062 for subsequent case law.

There is separate guidance on the shortfall penalties provided in s 141A, 141B, 141C and s 141D of the TAA, the threshold requirements for a shortfall penalty (that there be a “tax position” and a “tax shortfall”) and reductions and other matters that may be relevant when a shortfall penalty is imposed (Related Publications).