SPS 06/03 Reduction of shortfall penalties for previous behaviour

Examples 1 - 10

Example 1:
26.03.2003	31.08.2005	1.11.2005 (Tax shortfall)	1.02.2006 (Shortfall penalty for evasion imposed)
"Clean slate" before this date	Conviction under section 143A	Income tax position taken	No reduction for previous behaviour

End of Example 1: - close window to return to SPS 06/03.

Example 2:
26.03.2003	1.11.2005 (Tax shortfall)	30.11.2005	1.02.2006 (Shortfall penalty for evasion imposed)
"Clean slate" before this date	Income tax position taken	Conviction under section 143A	Reduction for previous behaviour allowed

End of Example 2: - close window to return to SPS 06/03.

Example 3:
26.03.2003	1.06.2003 (Shortfall penalty for evasion imposed)	1.05.2005 (Tax shortfall)	1.08.2005 (Shortfall penalty for evasion imposed)
"Clean slate" before this date	Income tax position taken	Income tax position taken	No reduction for previous behaviour

End of Example 3: - close window to return to SPS 06/03.

Example 4:
26.03.2003	1.06.2003 (Shortfall penalty for evasion imposed on income tax position)	1.05.2005 (Tax shortfall)	1.08.2005 (Shortfall penalty for evasion imposed on FBT position taken on 1.05.2005)
"Clean slate" before this date	Income tax position taken	FBT position taken	Reduction for previous behaviour allowed

End of Example 4: - close window to return to SPS 06/03.

Example 5:
26.03.2003	1.04.2003	5.04.2005 (Tax shortfall)	1. 07.2005 (Shortfall penalty for gross carelessness imposed on the FBT position taken on 5.04.2005)
"Clean slate" before this date	Conviction under section 143A	FBT position taken	No reduction for previous behaviour allowed

End of Example 5: - close window to return to SPS 06/03.

Example 6:
26.03.2003	5.04.2005 (Tax shortfall)	15.04.2005	1. 07.2005 (Shortfall penalty for gross carelessness imposed on the FBT position taken on 5.04.2005)
"Clean slate" before this date	FBT position taken	Conviction under section 143A	Reduction for previous behaviour allowed

End of Example 6: - close window to return to SPS 06/03.

Example 7:
Four-year satisfactory behaviour period running from 1 August 2003 to 31 July 2007
26.03.2003	1.09.2003 (Tax shortfall)	30.09.2003 (Shortfall penalty for taking an abusive tax position imposed on the income tax position taken on 1.09.2003)	31.07.2007 (Tax shortfall)	31.08.2007 (Shortfall penalty for gross carelessness imposed on the income tax position taken on 31.07.2007)
"Clean slate" before this date	Income tax position taken	Reduction for previous behaviour allowed	Income tax position taken	No reduction for previous behaviour

End of Example 7: - close window to return to SPS 06/03.

Example 8:
Two-year "satisfactory behaviour period" from 1 August 2005 to 31 July 2007
26.03.2003	30.09.2003 (Shortfall penalty imposed for taking an abusive tax position imposed under section 141D on GST position taken on 1.09.2003)	1.08.2005	31.07.2007 (Tax shortfall)	31.08.2007 (Shortfall penalty for gross carelessness imposed under section 141C on GST position taken on 31.07.2007)
"Clean slate" before this date	Reduction for previous behaviour allowed	Start of "satisfactory behaviour period"	GST position taken	Reduction for previous behaviour allowed

End of Example 8: - close window to return to SPS 06/03.

Example 9:
26.03.2003	7.8.2005 (Shortfall penalty for taking lack of reasonable care imposed under section 141A for an income tax position after voluntary disclosure )	7.8.2006 (Shortfall penalty for gross carelessness imposed under section 141C for an income tax position after voluntary disclosure )	7.08.2007 (Shortfall penalty for gross carelessness imposed under section 141C for an income tax position after voluntary disclosure )
"Clean slate" before this date	Reduction for previous behaviour allowed	Reduction for previous behaviour allowed	Reduction for previous behaviour allowed

End of Example 9: - close window to return to SPS 06/03.

Example 10:
Four-year "satisfactory behaviour period" from 1 July 2004 to 30 June 2008
26.03.2003	7.08.2004 (Shortfall penalty for lack of reasonable care imposed after voluntary disclosure)	7.08.2005 (Shortfall penalty for evasion imposed after IRD investigation by Inland Revenue)	7.08.2006 (Shortfall penalty for evasion imposed after voluntary disclosure)	7.08.2007 (Shortfall penalty for evasion imposed after voluntary disclosure)	7.08.2008 (Shortfall penalty for taking an abusive tax position imposed after voluntary disclosure)
"Clean slate" before this date	Previous behaviour reduction allowed	Previous behaviour reduction allowed	Previous behaviour reduction allowed	Previous behaviour reduction allowed	Previous behaviour reduction allowed

End of Example 10: - close window to return to SPS 06/03.