QUESTION 6

During an audit of his 2018/19 income tax return, Simon Vase was found to have omitted $10,000 of assessable income.

The tax return originally lodged by Simon disclosed taxable income of $125,000. Simon has adequate private health insurance.

Calculate the likely penalties that would be imposed on Simon if the shortfall was the result of:

• A lack of reasonable care to comply with taxation law
• Recklessness as to the operation of taxation law
• Intentional disregard of taxation law