Division 286: penalites for failure to lodge documents on time

Abstract

According to s 286-25 the object of Division 286 is to provide a uniform administrative penalty regime for all taxation laws applicable to the failure to give returns, notices, statements or other documents on time. The division was inserted into the legislation by A New Tax System (Tax Administration) Act (No 2) 2000 (Act No 91 of 2000). It first applies in relation to returns, etc for the 2000-01 income year (2001-02 in the case of FBT). Similar penalties applied under relevant legislation in respect of earlier years, for example ss 163A and 163B of the IT AA36. Section 286-75(1) states the general rule that administrative penalties may be imposed under Division 286 if a taxation law requires an entity to lodge with the Commissioner a return, notice, statement or other document and the entity fails to lodge it on time or in the approved form. The penalty is known as the failure to lodge penalty. The Division 286 failure to lodge penalty does not apply to returns, etc required to be lodged under legislation relating to the superannuation guarantee scheme and supervisory levies for self managed superannuation funds: s 286-75(2).