Media release 2009/67
The Tax Office today issued a taxpayer alert warning people about sham arrangements promoted as ‘mortgage management plans’ which promise to help home owners repay their home loan sooner and claim tax deductions to which they are not entitled.
Tax Commissioner Michael D’Ascenzo said while these arrangements may appear attractive, people should be warned they will face close scrutiny by the Tax Office.
“These arrangements are essentially about people refinancing their home loan and establishing what appears to be an investment loan to fund the purchase of shares in a bogus company,” Mr D’Ascenzo said.
“We identified these arrangements through our regular refund checks which lead us to the promoter.
“We are currently contacting over 140 people involved in these asking them to review their circumstances and inviting them to make a voluntary disclosure where necessary.
“People who make a voluntary disclosure before we contact them for an audit will be entitled to a reduction in any penalties that may apply.
“Tax evasion schemes of this type may promise big financial returns, but those involved usually end up with a very large tax debt and substantial penalties or prosecution action when they do get caught.”
Taxpayers wishing to make a voluntary disclosure should call the Tax Office on 1800 177 006.
More information
Taxpayer Alert 2009/20 Interest deduction generators involving promoter controlled companies is available from the Tax Office website http://www.ato.gov.au/atp/
Taxpayers who are unsure about their own circumstances should seek independent advice or apply for a private ruling from the Tax Office.
TAXPAYER ALERT
Taxpayer alerts are intended as an ‘early warning’ to taxpayers and their advisers of significant tax planning issues or arrangements that the Tax Office has under risk assessment or about which it has concerns.
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.
Christie has written 811 awesome articles for us at Alan Lewis Accountants – BLOG
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{ 2 comments… read them below or add one }
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Alisha
yeah and if the government bailed out more people, the republicans would get their panties up in a bunch. This is the type of issue that is a no win for a politician. Basically if you owe more on your house than it is worth…that is YOUR PROBLEM. YOU BOUGHT TOO MUCH HOUSE. Sorry.