Section 439 - Penalty for under-reporting and misreporting of income

Penalty for under-reporting: enhanced tax penalties apply where assessed income exceeds declared income or where misreporting occurs.

Penalty applies when assessed or reassessed total income exceeds the income determined in the return or the non taxable threshold, or when reassessment reduces a declared loss or converts it into income; deemed total income computations and a specified formula govern calculation where deemed income provisions apply, and amounts attributable to prior years are allocated sequentially to preceding years until covered.