Income Tax Assessment Act 1997
26‑5 Penalties26‑5 Penalties
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26‑5 Penalties
(1) You cannot deduct under this Act: (a) an amount (however described) payable, by way of penalty, under an *Australian law or a *foreign law; or (b) an amount ordered by a court to be paid on the conviction of an entity for an offence against an *Australian law or a *foreign law. (1A) Without limiting paragraph (1)(a), you cannot deduct under this Act the *general interest charge or the *shortfall interest charge. (2) This section does not apply to an amount payable, by way of penalty, under Subdivision 162‑D of the *GST Act.
Note: See paragraph 25‑5(1)(ca) for the deductibility of penalties that arise under Subdivision 162‑D of the GST Act.