40Amount of penalty tax

### 40 Amount of penalty tax > > (1)  The amount of penalty tax payable is 25% of the amount of tax unpaid. > > > (2)  The Commissioner may increase the amount of penalty tax payable to 75% of the amount of tax unpaid if satisfied that the tax default was caused wholly or partly by the intentional disregard by the taxpayer or a person acting on behalf of the taxpayer of a taxation law. > > > (3)  The Commissioner may determine that a penalty tax is not payable if satisfied that – > > > > > > (a) the taxpayer or a person acting on behalf of the taxpayer took reasonable care to comply with the taxation law; or > > > > > > > (b) the tax default occurred solely because of circumstances not amounting to financial incapacity that are beyond the control of the taxpayer or a person acting on behalf of the taxpayer.