141EEPenalty for acquiring or possessing electronic sales suppression tools

1. This section applies to a person who—

2. is required by a tax law to make or keep records; and
3. knowingly acquires, or has possession or control of an electronic sales suppression tool (the suppression tool), or a right to use a suppression tool; and
4. has a purpose in relation to the suppression tool of evading the assessment or payment of tax under a tax law, whether by them or by another person.

5. This section does not apply when the person—

6. acquires a business whose operations include the use of the suppression tool or the right to use it; and
7. could not reasonably be expected to be aware of the existence of the suppression tool in the business; and
8. has not used the suppression tool in the business.

9. The person is liable to pay an electronic sales suppression penalty of $5,000.

10. For the purposes of the imposition of a penalty under subsection (3), a person to whom this section applies is liable to pay a single penalty for all related tax types and periods. A further penalty may be imposed for a later period of time for the continued possession or control of, or right to use, the suppression tool.

11. For the purposes of subsection (1)(c), and without limiting the provision, a person is treated as meeting the purpose test if they have used the suppression tool to evade the assessment or payment of tax.