Amendment status not verified — confirm the current text below against the official source.
Automatic mitigation and increase of penalties (1) Where as a result of any proceedings the amount of tax with respect to which a penalty was levied has been wholly reduced, the penalty levied shall be cancelled and if the penalty has been paid, it shall be refunded. (2) Voluntary disclosure prior to audit. lf - (a) a person is liable to pay a penalty under subsections 87(121(b), (c) or (d); and (b) the person voluntarily discloses to the Commissioner in writing the existence of the tax deficiency before the Commissioner informs the person that an audit of the person's tax obligations is to be carried out; a the amount of the penalty otherwise due shall be reduced by 80% of the penalty. (3) Voluntary disclosure during audit. lf - (a) a person is liable to pay a penalty under subsections 87(12Xb), (c) or (d); and (b) the person voluntarily discloses to the Commissioner in writing the existence of the tax deficiency after the Commissioner informs the person that an audit of the person's tax obligations is to be carried out; the amount of the penalty otherwise due shall be reduced by 50% of the penalty. (4) Reliance on advice. lf - (a) a person is liable to pay a penalty under subsections 87(12\ (b),(c) or (d); (b) the tax deficiency arose because the person treated this Act as applying to the person in a particular way; and (c) the decision to adopt that treatment was made by the person relying on a determination given to the person by the Commissioner under section 85 or a ruling issued by the Commissioner under section 86; the amount of the penalty otherwise due shall be reduced to nil. (5) Repeat offences. Where - (a) an administrative penalty under this Act has been assessed; (b) the penalty has not been remitted in full after objection; and (c) the person is subsequently assessed to a further administrative penalty in respect of the same or a substantially similar failure occurring on another occasion (in this section called the "subsequent offence") ; the penalty otherwise due under this Act shall be increased by - (i) in the case of the first subsequent offence, 25% of the penalty otherwise provided; and (ii) in the case of the second and any further subsequent offence , 100"/" of the penalty otherwise provided.