The ATO on Thur 20.2.2014, issued Practice Statement PS LA 2014/1 to provide guidance to ATO personnel on how the Commissioner administers penalties for failure to comply with Ancillary Fund Guidelines. It also provides guidance on when directors of a corporate trustee may have a defence to the administrative penalties and when the Commissioner may remit such penalties.
Broadly, the PS LA sets out the principles that should be taken into account in determining the application of the administrative penalties including “being fair to those trustees wanting to do the right thing, and being firm but fair with those choosing to disengage and avoid their taxation obligations”.
In addition, it outlines 3 steps in applying administrative penalties on Ancillary Funds.
[LTN 34, 20/2/14]