Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:4_2:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 2/2)
Character Range: 50209–52583

could be amended and in future *income tax returns, that would be necessary to correct the errors;
 (d) the difficulty in obtaining any necessary information;
it is not reasonable to require a recalculation of the amounts involved.

Exception where error due to fraud or evasion

 (5) However, the conditions in this section are not satisfied if the errors were to any extent due to fraud or evasion.

Requirement to notify

 (6) The *head company of the *consolidated group must, as soon as practicable after becoming aware that it made one or more errors in working out the *tax cost setting amount, notify the Commissioner in the *approved form:
 (a) that it had made the errors; and
 (b) of the amount of the overstated amount or understated amount.

705‑320  Tax cost setting amounts taken to be correct

 (1) For the purposes of this Act (other than this Subdivision) and for the purposes of the Taxation Administration Act 1953, any *tax cost setting amounts that were worked out by the *head company, so far as they were due to the errors, are taken to have been correct if the conditions in section 705‑315 are satisfied.

Note 1: If the conditions in section 705‑315 are satisfied, CGT event L6 happens (see section 104‑525).

Note 2: Subsection (1) means that the Commissioner cannot amend any assessments necessary to correct the errors, and that (except as mentioned in subsection (2)) no offences or administrative penalties arise in respect of the errors.

 (2) Subsection (1) does not apply for the purposes of determining whether there is an offence against section 8N of the Taxation Administration Act 1953, or an administrative penalty under section 284‑75 or 284‑145 in Schedule 1 to that Act, in relation to statements made before the Commissioner became aware of the errors.

Note 1: Section 8N of the Taxation Administration Act 1953 deals with false or misleading statements. Sections 284‑75 and 284‑145 in Schedule 1 to that Act set out the circumstances in which an entity is liable for an administrative penalty.

Note 2: The offence and administrative penalty provisions however apply on a modified basis—see subsection 8W(1C) of the Taxation Administration Act 1953, and subsections 284‑80(2) and 284‑150(2) in Schedule 1 to that Act.

[The next Division is Division 707.]

Part 2—Consequential amendments

Income Tax Assessment Act 1997