What is a tax shelter arrangement?
You have a tax shelter arrangement in the income year in which you incur prepaid expenditure if:
- your allowable deductions attributable to the arrangement for the expenditure year exceed your assessable income from the arrangement for that year
- you do not have day-to-day control over the operation of the arrangement
- at least one of the following is met:
- more than one taxpayer participates as an investor in the arrangement or
- the manager, arranger or promoter of the arrangement, or an associate, carries out similar activities for other taxpayers.