141IReduction where temporary shortfall

1. A shortfall penalty payable by a taxpayer under any of sections 141A to 141EB must be reduced if and to the extent that the tax shortfall is temporary.

2. The level by which a shortfall penalty is to be reduced for a temporary tax shortfall is 75% of the penalty that applies to all or that part of the tax shortfall that is a temporary tax shortfall.

3. A tax shortfall is a temporary tax shortfall for the return period of a tax position if, when the Commissioner considers the assessment of a shortfall penalty, the Commissioner is satisfied that—

4. the tax shortfall has been or will be, in an earlier or later return period, permanently reversed or corrected—
   1. before the end of the 4-year period beginning after the day on which the taxpayer took the tax position; and
   2. with the effect that the taxpayer pays or returns for the relevant return periods the correct total amount of tax, not including penalties and interest, in respect of the tax position; and
   3. as a result of actions taken by the taxpayer or by the operation of law or circumstances; and
5. no tax shortfall will arise in a later return period in respect of a similar tax position; and
6. no arrangement exists with the purpose or effect of creating for another return period a tax deferral or advantage related to the tax position.