Penalty for benefits to related persons: enhanced tax penalties apply when exempt entities divert income to disqualified beneficiaries. The Assessing Officer may direct payment of a penalty equal to the aggregate amount of income applied by an exempt fund, institution or trust for the benefit of disqualified persons, and for repeat violations may impose a substantially higher penal multiple of that aggregate amount; this penalty operates without prejudice to other penalties under the chapter.
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Provisions expressly mentioned in the judgment/order text.
Penalty for benefits to related persons: enhanced tax penalties apply when exempt entities divert income to disqualified beneficiaries.
The Assessing Officer may direct payment of a penalty equal to the aggregate amount of income applied by an exempt fund, institution or trust for the benefit of disqualified persons, and for repeat violations may impose a substantially higher penal multiple of that aggregate amount; this penalty operates without prejudice to other penalties under the chapter.
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