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Schemes to qualify for the tax incentives

Last updated 6 April 2021

The general anti-avoidance provisions in Part IVA of the Income Tax Assessment Act 1936 may apply to schemes to access the early stage investor tax incentives, including both the tax offset and the modified CGT treatment.

These rules apply to prevent taxpayers from obtaining tax benefits by entering into contrived or artificial arrangements to access the tax incentives. Where the conditions in Part IVA are satisfied, the Commissioner can cancel the relevant tax benefits.