The ATO on Wed 16.4.2014, issued an Addendum to Ruling MT 2008/2 (Shortfall penalties: administrative penalty for taking a position that is not reasonably arguable) to reflect amendments to the TAA contained in the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 (Amendment Act).
The Amendment Act inserted Subdiv 284-E, which provides that an entity will not have a reasonably arguable position for scheme penalty purposes (where the transfer pricing provisions in Subdivs 815-B or 815-C of the ITAA 1997 apply) if the entity has not met specific documentation requirements.
[LTN 73, 16/4/14]