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  • If it sounds too good to be true…

    6 June 2022

    Tax time is here once again and most businesses will be looking to get the best out of their tax return. It’s OK to plan your business’ finances to keep your tax to a minimum. But you should steer away from tax avoidance schemes that deliberately exploit the law.

    Through the Tax Avoidance Taskforce, we detect and deter promoters of these inappropriate schemes.

    Before investing your hard-earned money, look out for the following red flags of a dodgy scheme:

    • It sounds too good to be true – these schemes often offer large tax deductions or refunds that no other tax planner can match.
    • It focuses on a 'cash injection' – promoters often spruik government incentives or offsets to deliver quick cash into your back pocket, even if your business isn't eligible for it.
    • Fees are based on your savings – promoters of tax avoidance schemes usually base their service fees on how much tax they promise you will save.
    • You're discouraged from getting a second opinion – promoters don't want to run the risk of you finding out that their scheme operates outside the intent of the law.

    Next steps

    If you’re unsure about the tax advice you’ve received, contact us by:

    • phoning 1800 060 062
    • completing a tip-off form at ato.gov.au/tipoff

    See also

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