Q17.12.5 ( Previous offences) Cheryl, a single resident taxpayer, is employed as an elite full-time soccer referee and claims that she plays video games for 'practice in making decisions'. In her 2017/18 income tax return, Cheryl disclosed taxable income of $153,000 after claiming video game expenses of $1,500. Cheryl is also subject to the Medicare Levy Surcharge (Tier 3). Cheryl has been penalised previously following an audit of her 2014/15 income tax return. Required: Calculate the likely penalties that would be imposed on Cheryl if the resulting shortfall were uncovered during ATO audit activity, and it was considered that she had no reasonably arguable position. Tip: The increased penalty is calculated on the base penalty amount. Cheryl Disclosed Amended Taxable Income Taxable Income Taxable Income Tax on income Medicare Levy 2% Medicare Levy Surcharge 1.5% Total '6'!- -(:B- 'EB- 3- Total shortfall Of tax payable {= Amended Total less Disclosed Total) $ Penalties Calculation details Amount :1; Base penalty amount Increase for previous offences Total Penaltv