Just doing a bit more reading to see what they are up for and the potential fine does look to be more than the current bank balance. If they have made a false statement to the ATO, this opens them up to action from other regulators.
Statements and unarguable positions
Penalties apply to taxpayers who:
False or misleading statement penalty – shortfall amount
You'll be liable for this penalty if you make a false or misleading statement (for example, in a tax return, activity statement or amendment request) that results in you having a shortfall amount. The shortfall amount is the difference between the correct tax liability or credit entitlement, and the liability or entitlement worked out using the information you provided.
Intentional disregard: The base penalty is 75% of the shortfall amount. You intentionally disregard the law if you are fully aware of a clear tax obligation and you disregard the obligation with the intention of bringing about certain results (underpaying tax or over-claiming an entitlement).
The base penalty amount can be increased or reduced if there are aggravating or mitigating circumstances.
LWP Price at posting:
0.1¢ Sentiment: None Disclosure: Not Held
