Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p1
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/16)
Character Range: 1320422–1324012

2                    item 1 does not apply                                                                                                                                                                                                                                                                                 the sum of:
                                                                                                                                                                                                                                                                                                                           (a) 25% of your *scheme shortfall amount, to the extent that it is not attributable as mentioned in paragraph (b); and
                                                                                                                                                                                                                                                                                                                           (b) 10% of your scheme shortfall amount, to the extent (if any) that it is attributable to the entity, or the entity's agent, treating the adjustment provision as applying (including not applying) to a matter (or identical matters) in a particular way that is *reasonably arguable

Note: For special rules about when transfer pricing treatment is not reasonably arguable, see Subdivision 284‑E.

284‑165  Exception—threshold for penalty arising from cross‑border transfer pricing
 (1) You are not liable to an administrative penalty under subsection 284‑145(2B) if your *scheme shortfall amount is equal to or less than your *reasonably arguable threshold.
 (2) You are also not liable to an administrative penalty under that subsection if:
 (a) you have the *scheme shortfall amount because of section 284‑30 (about trusts); and
 (b) the amount by which the trust would, apart from the application of Subdivision 815‑B or 815‑C of the Income Tax Assessment Act 1997, have had a greater *net income, or a lesser *tax loss, is equal to or less than the trust's *reasonably arguable threshold.
 (3) You are also not liable to an administrative penalty under that subsection if:
 (a) you have the *scheme shortfall amount because you are a partner in a partnership that participated in the *scheme; and
 (b) the amount by which the partnership would, apart from the application of Subdivision 815‑B or 815‑C of that Act, have had a greater *net income, or a lesser *partnership loss, is equal to or less than the partnership's *reasonably arguable threshold.

Nil amounts
 (4) For the purposes of this section:
 (a) treat a trust or a partnership that has no *net income for an income year as having a net income for the year of a nil amount; and
 (b) treat a trust that has no *tax loss for an income year as having a tax loss for the year of a nil amount; and
 (c) treat a partnership that has no *partnership loss for an income year as having a partnership loss for the year of a nil amount.

Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C

Table of sections
284‑220 Increase in base penalty amount
284‑224 Reduction of base penalty amount if law was applied in an accepted way
284‑225 Reduction of base penalty amount if you voluntarily tell the Commissioner

284‑220  Increase in base penalty amount
 (1) The *base penalty amount is increased by 20% if:
 (a) you took steps to prevent or obstruct the Commissioner from finding out about a *shortfall amount, or the false or misleading nature