What is the use of compliance history?

ATO encourage taxpayers to get good compliance history by treating more leniently than the taxpayers do not have the good compliance history. Compliance history not telling to pay a penalty if a person having an amount shortfall. It means that  ATO consider every circumstance, includes compliance history while deciding whether it is reasonable to reduce the penalty in part or in full. The importance of compliance history will be vary depends on the situation if a taxpayer,  not having obedient, ignore the law and not having a good compliance history will create some bad impact on the decision which can be made by the  ATO. Similarly, if a person has a good compliance history have to provide clear evidence it should be reviewed the ATO office then they will decide whether a penalty will be remitted or not for the individual person.