Promoter penalty laws: Practice statements

These practice statements set out decision making processes and the principles to be followed by Tax Office staff in applying the promoter penalty laws, including principles relevant to choosing the appropriate remedy for treating the prohibited conduct.

The promoter penalty laws came into effect in April 2006 and are contained in Division 290 of Schedule 1 to the Taxation Administration Act 1953. The laws provide new tools to deter the promotion of tax exploitation schemes and the implementation of schemes that have been promoted on the basis of conformity with a product ruling in a way that is materially different from that described in the product ruling. The remedies available to the Commissioner to achieve these outcomes range from accepting a voluntary undertaking to applying to the Federal Court for an injunction or the imposition of a civil penalty.

• PS LA 2008/7 Application of the promoter penalty laws (Division 290 of Schedule 1 to the Taxation Administration Act 1953) to promotion of tax exploitation schemes
• PS LA 2008/8 Application of the promoter penalty laws (Division 290 of Schedule 1 to the Taxation Administration Act 1953) to schemes involving product rulings

Issued on 17 April 2008 the practice statements were previously released as drafts and were co-designed with tax professionals and key internal stakeholders who were members of the National Tax Liaison Group Promoter Penalty Co-design Sub-committee.