Dodgy tax advice can get you in trouble!

We are getting closer to tax time in Australia. This means it is also the time for the purveyors of dodgy tax schemes to come out and play.

The primary anti-avoidance called Part IVA of the Income Tax Assessment Act 1936 was introduced in 1981 to counter tax schemes that were said to be artificial or contrived. However, the provisions originally legislated were actually much wider than that and they have also been tightened over several amendment cycles over the subsequent 34 years.

Part IVA’s reach has been better defined over more recent decades by various Federal and High Court decisions regarding the true ambit of the provisions. It is a very powerful weapon in the Tax Commissioner’s arsenal for the fight against tax avoidance. 

Moreover, the Crimes (Taxation Offences) Act 1980 and subsequent amendments to Part III of the Taxation Administration Act 1953 to incorporate a range of prosecutable tax crimes and quasi-crimes, have provided even more powerful weopons for the fight against tax evasion.

To help you avoid the quicksand, the Australian Taxation Office has just released a short video titled "Tax Tricks That Will Get You In Trouble”. You can view it here-

You might also like to watch the Tax Office "If it seems too good to be true, get a second opinion” video here-

Remember, getting it wrong can land you in goal!

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