We have warned taxpayers to steer clear of tax avoidance schemes as they prepare to lodge their 2012 tax returns.
'It is at this time of year we see an increase in the number of tax avoidance schemes being promoted,' Tax Commissioner Michael D'Ascenzo said.
Just like genuine investments, these schemes might promise 'wealth creation' or financial security. Others can exploit social or environmental conscience by promising large up-front tax deductions for donations to charity or 'green initiatives'.
As appealing as an investment opportunity may sound, sometimes the promised tax benefits might not be available under the law.
If you're considering entering into an arrangement that will affect your tax liabilities, it's important to carefully investigate and understand the tax consequences before making your investment decision.
Not getting the right information and advice can lead to a large tax debt, including substantial penalties and interest.
We have partnered with Paul Clitheroe, Chairman of the Federal Government's Financial Literacy Board and respected financial commentator, to produce a YouTube video which highlights the pitfalls of getting caught in a tax avoidance scheme and provides some helpful tips for taxpayers.
Our website also has information about some of the more common tax schemes and emerging arrangements. It also provides information on what people can do if they've been caught up in a scheme.
Last Modified: Wednesday, 15 May 2013