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Voluntary disclosure: Reasonably arguable position

Taxation in Australia | 1 Aug 12
 
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Published on 01 Aug 12 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

In general terms, where there is a tax shortfall in the absence of reasonable care being taken, a penalty must be imposed, unless the Commissioner accepts that a reasonably arguable position was adopted. The system of imposing administrative penalties relies on an assessment of the behaviour of the taxpayer and, by imputation, the taxpayer’s tax agent. This is usually undertaken by a public servant, who has no knowledge of the taxpayer’s circumstances. This assessment gives rise to a rate, and therefore amount, of administrative penalty. The Commissioner can then, depending on the way in which the shortfall was determined, increase or reduce the penalty.

This article focuses on the process of assessment, reduction and remission of administrative penalties. The first part of the article deals with the uniform administrative penalty regime, with a focus on the voluntary disclosure regime. The second part discusses practical strategies to obtain reductions in penalties and interest charges.

Author profile

Arthur Athanasiou CTA-Life
Photo of author, Arthur ATHANASIOU Arthur Athanasiou, CTA (Life), is an Accredited Tax Law Specialist and Principal of AGA Legal Pty Ltd. He is a highly competent and well-respected tax lawyer with 30 years’ experience. While he provides clients with tax and structuring advice, his main area of focus is in resolving tax disputes with the ATO and SRO and settling tax audits. Arthur also practises in matters involving tax agents and inquiries by the Tax Practitioners Board including appealing adverse TPB decisions. His practice also extends to white-collar crime, and other taxation offences. He also has a Deceased Estates practice. Arthur has qualified as a Chartered Accountant and is a former President of The Tax Institute. He has been appointed as an Adjunct Professor at La Trobe University Law School and chaired the Law Institute’s Tax Law Advisory Committee for a decade. Arthur has been recognized by Doyle's Guide who has recognized him as a "Leading Lawyer, Tax Law, Victoria" multiple times (2016, 2018-2024) and a "Recommended Lawyer, Tax Law, Victoria" (2015, 2017). Best Lawyers Peer Review recognised him as "Best Lawyer Trusts and Estates" (2022-2026) and for his work in Tax Law (since 2023). He is a widely published writer on taxation issues and regularly appears in mainstream media and presents at tax conferences and seminars. - Current at 03 June 2025
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