Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p6
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/16)
Character Range: 1373212–1375822

engaged in the same or similar conduct; and
 (i) the degree of the entity's cooperation with the Commissioner.

Recovery of penalty
 (6) The penalty is a civil debt payable to the Commonwealth, and the Commissioner may, on behalf of the Commonwealth, enforce an order for an entity to pay the penalty as if it were an order made in civil proceedings against the entity to recover a debt due by the entity. The debt arising from the order is taken to be a judgment debt.

290‑55  Exceptions

Reasonable mistake or reasonable precautions
 (1) The Federal Court of Australia must not order the entity to pay a civil penalty if the entity satisfies the Court:
 (a) that the conduct in respect of which the proceedings were instituted was due to a reasonable mistake of fact; or
 (b) that:
 (i) the conduct in respect of which the proceedings were instituted was due to the act or default of another entity, to an accident or to some other cause beyond the entity's control; and
 (ii) the entity took reasonable precautions and exercised due diligence to avoid the conduct.
 (2) The other entity referred to in paragraph (1)(b) does not include:
 (a) someone who was an employee or agent of the entity when the alleged conduct occurred; or
 (b) if the entity is a body corporate—someone who was a director of the entity when the alleged conduct occurred; or
 (c) if the entity is a partner in a partnership—someone who was also a partner in the partnership when the alleged conduct occurred; or
 (d) if the entity is a trustee of a trust that has more than one trustee—someone who was also a trustee of the trust when the alleged conduct occurred.

Reliance on advice from the Commissioner
 (3) The Commissioner must not make an application under section 290‑50 for conduct referred to in subsection 290‑50(1) in relation to an entity's involvement in a *scheme if:
 (a) the scheme is based on treating a *taxation law as applying in a particular way; and
 (b) that way agrees with:
 (i) advice given to the entity or the entity's agent by or on behalf of the Commissioner; or
 (ii) a statement in a publication approved in writing by the Commissioner.

Time limitation
 (4) The Commissioner must not make an application under section 290‑50 in relation to an entity's involvement in a *tax exploitation scheme more than 6 years after the entity last engaged in conduct that resulted in the entity or another entity being a *promoter of the tax exploitation scheme.
 (5) The Commissioner must not make an application under section 290‑50 in relation to an entity's involvement in a *scheme that has been promoted on