64AFPenalty if a parent underestimates an income amount

#### 64AF Penalty if a parent underestimates an income amount (1) A parent is liable to pay the Registrar a penalty if: (a) the parent made an income election relating to a year of income; and (b) the parent’s actual adjusted taxable income for the year of income has been ascertained by the Registrar; and (c) the parent has underestimated an income amount in making the income election. (2) If the parent did not make more than one income election relating to the year of income, the parent has underestimated an income amount in making the income election if: (a) in a case where subsection 60(2) applied to the income election—the parent’s actual adjusted taxable income for the year of income is at least 110% of the amount that applied under that subsection; or (b) in a case where subsection 60(3) applied to the income election—the amount worked out by subtracting: (i) the parent’s applicable year to date income amount for the year of income; from (ii) the parent’s actual adjusted taxable income for the year of income; is at least 110% of the partial year income amount worked out by the parent under subsection 60(4). (3) If the parent made more than one income election relating to the year of income, the parent has underestimated an income amount in making the income elections if the amount worked out by subtracting: (a) the parent’s applicable year to date income amount (if any) for the year of income; from (b) the parent’s actual adjusted taxable income for the year of income; is at least 110% of the parent’s estimated ATI amount for the year of income worked out under subsection 64A(3).