Income Tax Amendment Act 1986

This commentary item was published in Public Information Bulletin Volume 163, May 1987

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It has been drawn to the Department's attention that a statement in PIB 147 at page 59 describing the effect of section 42(1) is subject to misinterpretation.

It is stated: -

"The maximum penalties do not increase each time a taxpayer commits or is convicted of a single offence. The increase occurs on each occasion on which the taxpayer is convicted of one or more offences against the principal Act."

Rather, the maximum penalties do not increase with each single offence committed on the first occasion on which the taxpayer is convicted. The increase in the maximum penalty only occurs on a subsequent occasion on which the person is convicted of one or more offences against the principal Act, e.g., if a taxpayer is charged and convicted, for his/her first time, of four offences of failing to make tax deductions. The maximum fine on each charge is $15,000. The maximum penalty increases to $25,000 on each charge if the taxpayer is subsequently further charged and convicted.