Dana, a resident taxpayer, was recently subjected to an ATO audit for her 2021/22 income tax return. It was found that she had incorrectly claimed motor vehicle expenses of $1,000 resulting in a tax shortfall of $390.00. Dana's taxable income was $163,000.

a）Calculate any penalties that would apply if she has lodged her own return, followed the instructions in Individual tax return instructions, but made a mistake due to an ambiguity in those instructions.

b）Calculate any penalties that would apply if the same mistake was made but Dana has hired a Registered Tax Agent to prepare and lodge her return. She has disclosed all relevant information to her tax agent.

Answer rating: 100% (QA)

a If Dana lodged her own return followed the instructions in Individual tax return instructions and ... View the full answer