Income tax: international transfer pricing - penalty tax guidelines

TR 98/16 does not apply to schemes entered into in relation to the 2000-01 or later income year(s).

Item 28 of A New Tax System (Tax Administration) Act (No. 2) 2000 inserted section 222AA into Part VII of the Income Tax Assessment Act 1936 (ITAA 1936) so that this Part ceased to apply in relation to schemes entered into in relation to the 2000-01 or later income year(s).

Furthermore, item 49 of the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 repealed subsection 284-145(2) of Schedule 1 to the Taxation Administration Act 1953. This subsection imposed scheme penalties arising from the application of Division 13 of the ITAA 1936 or the International Tax Agreements Act 1953 in respect of transfer pricing and income years commencing on or before 28 June 2013. That is, immediately prior to the enactment of Subdivisions 815-B, 815-C and 815-D of the Income Tax Assessment Act 1997 that replaced Division 13 of the ITAA 1936.