The Tax Office today issued four taxpayer alerts warning people of its concerns about abusive tax schemes.
These alerts cover employee savings plans, salary deferral arrangements, a profit washing scheme and a liquidation scheme.
Tax Commissioner Michael D’Ascenzo said people involved in or considering these schemes should be warned they face close examination by the Tax Office.
“These schemes are variations on ones that have concerned us before and we are considering whether the promoter penalty laws should be applied to people promoting them,” Mr D’Ascenzo said.
“We are concerned people may be tempted by such schemes as a way to avoid their tax as 30 June approaches.
“I ask again today that anyone involved in any abusive tax scheme to come forward and tell us about it as soon as possible.
“If people contact us before we begin an audit they will be entitled to a reduction in any penalties that may apply.
“Also if you know of people peddling abusive tax schemes, please contact us so as to protect others who may otherwise be persuaded to enter into these schemes.
“Abusive tax schemes tend to have a flow on effect, meaning people caught up can have a large tax debt and substantial penalties when they are caught.
“Anyone who is uncertain about their tax obligations should seek independent financial advice or apply for a Tax Office ruling.”
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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