Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p4
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/16)
Character Range: 1368380–1371008

from that described in a *public ruling, *private ruling or *oral ruling being promoted on the basis of conformity with that ruling.

Implementing scheme otherwise than in accordance with ruling
 (2) An entity must not engage in conduct that results in a *scheme that has been promoted on the basis of conformity with a *public ruling, *private ruling or *oral ruling (whether or not the ruling actually relates to the scheme) being implemented in a way that is materially different from that described in the ruling.
Note: A scheme will not have been implemented in a way that is materially different from that described in a ruling if the tax outcome for participants in the scheme is the same as that described in the ruling.
 (2A) For the purposes of subsections (1A) and (2), disregard:
 (a) subsection 82KZMGA(1A) of the Income Tax Assessment Act 1936; and
 (b) subsection 394‑10(5A) of the Income Tax Assessment Act 1997.
Note 1: Those 2 subsections relate to forestry managed investment schemes.
Note 2: The effect of this subsection is that a scheme will have been implemented in a way that is materially different from that described in a ruling if the tax outcome for participants in the scheme is the same as that described in the ruling only because of the operation of the subsections mentioned in paragraphs (a) and (b).

Civil penalty
 (3) If the Federal Court of Australia is satisfied, on application by the Commissioner, that an entity has contravened subsection (1), (1A) or (2), the Court may order the entity to pay a civil penalty to the Commonwealth.
Note: If the entity is a registered tax agent or BAS agent, being penalised under this subsection may affect the continued registration of the entity: see section 20‑45 and Subdivision 40‑A of the Tax Agent Services Act 2009.

Amount of penalty
 (4) The maximum amount of the penalty for a contravention by an entity is the greater of:
 (a) 5,000 penalty units; and
 (b) 3 times the total value of all benefits received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
 (4A) Despite subsection (4), the maximum amount of the penalty for a contravention by an entity that is a body corporate is the greatest of the following:
 (a) 50,000 penalty units;
 (b) 3 times the total value of all benefits received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme;
 (c) either:
 (i) 10% of the *aggregated turnover of the entity for the most recent income