Promoters are always looking for new ways to exploit the law or changes in the law. They promote schemes to people and promise tax benefits that aren’t legally available.
Tax avoidance schemes range from mass-marketed arrangements advertised to the public, to boutique or specialised arrangements offered directly to experienced investors. Some are marketed to individuals and may exploit people’s social or environmental conscience and generosity.
These schemes typically involve:
- reducing a participant’s taxable income
- increasing their deductions against their income
- increasing rebates
- avoiding tax and other obligations entirely.
A tax avoidance scheme may include complex transactions or distort the way funds are used in order to avoid tax or other obligations. It may also structure arrangements to:
- incorrectly classify revenue as capital
- exploit concessional tax rates
- illegally release super funds early
- inappropriately move funds through several entities, such as a series of trusts, to avoid or minimise tax that would otherwise be payable.
Below are types of schemes the ATO has dealt with:
- Unit trust arrangements and unpaid present entitlements
- Research and development tax incentive
- Non-lodgment of taxation returns
- Retirement planning schemes
- Financial products
- Collapse and restructure of agribusiness management investment schemes and participant information
- Unusual employee benefit arrangements
- Lump sum payments received by healthcare practitioners
- Private Company Profit Extraction
- Illegal early release of super
If you need help in this area, please contact one of our taxation lawyers on 1300 QUINNS (784 667) or 9223 9166 to arrange an appointment or visit our website www.quinns.com.au and submit an enquiry.