Updated Compliance Program 2004-05 - This information was updated on 13 October 2005

Promoters

Promoters are those who design, market, advance or encourage the growth of aggressive tax planning arrangements. They include some tax agents and advisers. We concentrate our efforts on dealing with promoters who represent the highest risk.

As mentioned earlier, many complex financial arrangements and schemes originate in investment banks and are marketed and promoted by legal and accounting firms.

Where a particular tax adviser or promoter of a tax avoidance arrangement is taking a lead role in aggressive tax planning, we investigate their clients to determine whether they have participated in the same and/or other aggressive arrangements. We also investigate the adviser or promoter to make sure the person or entity is complying with their own tax obligations.

We have increased our focus on promoters who use tax havens and have set up a special taskforce to enhance our ability to tackle abusive tax haven arrangements (see international tax issues).

Our strategies for dealing with promoters include:

• using our formal access powers, including unannounced visits where appropriate
• requiring higher risk promoters to lodge early and expand on the information in their tax returns
• using escalated lodgment and debt enforcement strategies, and
• working with the Australian Federal Police, the Australian Crime Commission and the Commonwealth Director of Public Prosecutions on possible criminal prosecutions. There are 36 investigations under way, eight of which relate to schemes that imply that people can have early access to their superannuation (see evasion and serious fraud).

While new aggressive tax planning arrangements identified through our work on promoters involve fewer participants, large amounts of revenue are at risk. These arrangements are more difficult to detect and we are continuing to improve our processes for obtaining intelligence.

Sections within Key features we are focusing on

• 1. International tax issues
• Reporting correct information
• Tax havens
• Bank secrecy
• Profit shifting
• GST international issues
• Offshore assets and foreign income
• Australian tax obligations of non-residents
• International tax law reform
• Meeting payment obligations
• How we help you comply
• 2. Aggressive tax planning
• Our compliance focus
• Goods and services tax
• Schemes that offer early access to superannuation
• Mass marketed investment schemes
• Employee benefit schemes
• Promoters
• Payment obligations
• How we help you comply
• 3. Evasion and serious fraud