Document ID: chunk:federal_register_of_legislation:C2016A00052:clause:3_14
Version: federal_register_of_legislation:C2016A00052
Segment Type: clause
Provision Reference: sch 3 cl 14
Character Range: 51773–52742

14  At the end of Division 288 in Schedule 1
Add:

288‑115  Prohibited offsets of liabilities using interest etc. accrued on farm management deposits
 (1) The person who made or is making a *farm management deposit is liable to an administrative penalty if:
 (a) the fact that the person made or is making the deposit is the reason why, or one of the reasons why, an amount of interest payable to the *FMD provider in respect of loans or other debts falls short of what it would otherwise be; and
 (b) the shortfall:
 (i) contravenes a requirement, contained in the agreement mentioned in paragraph 393‑20(1)(b) of the Income Tax Assessment Act 1997 in relation to the deposit, as set out in item 8 of the table in section 393‑35 of that Act; or
 (ii) would contravene such a requirement if it were contained in that agreement.
 (2) The amount of the penalty is 200% of so much of the shortfall as contravenes that requirement, or would contravene such a requirement.