The statement updates the guidance on shortfall penalties for evasion or similar acts under section 141E of the Tax Administration Act 1994. The draft explains when the penalty applies, what mental elements are required (such as intention, knowledge, wilful blindness, and subjective recklessness), and how these differ from other shortfall penalties. It covers statutory exceptions, the relationship with criminal prosecution, and the onus of proof. Practical examples and references to related guidance are included to help users understand how the rules work in real situations.

CA ANZ suggests some enhancements to improve clarity and practical utility.