141FBReduction of penalties for previous behaviour

1. A shortfall penalty (called the current penalty) for which a taxpayer is liable under section 141E is reduced, to 50% of the amount that would be payable by the taxpayer in the absence of this section, if the taxpayer is not—

2. convicted of an offence that is a disqualifying offence:
3. liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.

4. A shortfall penalty (called the current penalty) for which a taxpayer is liable under any of sections 141A to 141D is reduced, to 50% of the amount that would be payable by the taxpayer in the absence of this section, if the taxpayer is not—

5. convicted of an offence that is a disqualifying offence:
6. liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.

7. For the purpose of this section—

   disqualifying offence means—

   1. an offence under section 143A, 143B, 143F, 143G, 143H or 145 for which a conviction is entered—
      1. on or after 26 March 2003; and
      2. before the taxpayer takes the tax position to which the current penalty relates:
   2. an offence under section 143 or 144 that relates to the type of tax to which the current penalty relates and for which a conviction is entered—
      1. on or after 26 March 2003; and
      2. after the date that precedes, by the period specified in subsection (4), the date on which the taxpayer takes the tax position to which the current penalty relates; and
      3. before the taxpayer takes the tax position to which the current penalty relates

   disqualifying penalty means—

   1. for the purpose of subsection (1), a shortfall penalty that—
      1. relates to the type of tax to which the current penalty relates; and
      2. is for evasion or a similar act; and
      3. is not reduced for voluntary disclosure by the taxpayer; and
      4. relates to a tax position that is taken on or after 26 March 2003 and before the date on which the taxpayer takes the tax position to which the current penalty relates:
   2. for the purpose of subsection (2), a shortfall penalty that—
      1. relates to the type of tax to which the current penalty relates; and
      2. if the current penalty is—
         1. for gross carelessness or taking an abusive tax position, is a shortfall penalty for evasion or a similar act or for gross carelessness or taking an abusive tax position:
         2. for not taking reasonable care or taking an unacceptable tax position, is a shortfall penalty of any sort; and
      3. is not reduced for voluntary disclosure by the taxpayer; and
      4. relates to a tax position that is taken—
         1. on or after 26 March 2003; and
         2. after the date that precedes, by the period specified in subsection (4), the date on which the taxpayer takes the tax position to which the current penalty relates; and
         3. before the date on which the taxpayer takes the tax position to which the current penalty relates.

8. The period referred to in the definitions of disqualifying offence and disqualifying penalty, in subsection (3), and in subsection (5) is—

9. 2 years, if the current penalty relates to—
   1. the taxpayer's application of the PAYE rules:
   2. FBT:
   3. GST:
   4. RWT:
10. 4 years, if the period is not given by paragraph (a).

11. For the purpose of subsections (1) and (2), a shortfall penalty that relates to a tax shortfall arising from a tax position taken by a taxpayer is determined as if the taxpayer were not liable for a shortfall penalty that relates to a tax shortfall arising from another tax position taken by the taxpayer, if—

12. the Commissioner becomes aware of both tax shortfalls as a consequence of a single investigation or voluntary disclosure; and
13. the taxpayer—
    1. takes both tax positions on the same date:
    2. is not liable for a shortfall penalty at any time in the period specified in subsection (4) that ends on the earliest date on which the taxpayer takes a tax position that gives rise to a tax shortfall of which the Commissioner becomes aware as a consequence of the investigation or disclosure to which paragraph (a) refers.

14. Despite subsection (1), no reduction in the amount payable is allowed when an electronic sales suppression penalty is imposed under section 141EE(3) on a person—

15. who is liable to a penalty under section 141E(1); and
16. whose use of an electronic sales suppression tool contributes to the evasion or similar act.