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  • Tax avoidance schemes

    We take action against the promoters of tax avoidance schemes that promise tax benefits which are outside the letter or intent of the law. This year, we conducted six audits and reviews of promoters and raised almost $8.2 million in tax and penalties.

    We issued 19 product rulings and conducted 26 pre-lodgment discussions with product issuers and their advisors to explain our position on specific schemes.

    We have also focused on reducing fraudulent phoenix activity through our targeted program of over 220 reviews and audits resulting in $74.5 million in liabilities raised, with cash collections of $14.6 million.

    Over 2,800 reviews and audits of property developers were also undertaken, many of which also showed signs of fraudulent phoenix behaviour. These cases resulted in further liabilities of $215.1 million, with cash collections of $61.7 million. Cash collection rates for fraudulent phoenix operators are lower than for many other compliance risks, as the phoenix business model is designed to evade collection obligations. As a result, the phoenix strategy is intended to disrupt this business model, to prevent ongoing losses to revenue and to support law enforcement and prosecution treatments of fraudulent phoenix operators.

    Last modified: 02 Mar 2015QC 42706