Following public consultation in March, we’ve published a final tax determination on the early stage investor tax offset scheme we’ve been warning about for some time.
The final determination confirms our draft view – that the anti-avoidance provisions in the tax law can apply to this scheme, potentially cancelling any tax benefit obtained by participants.
What this means for your business
Our view applies to taxpayers involved in the scheme before, during and after the date of this final determination. If you’ve already been caught up in it, you may be asked to pay back any offset claimed. Penalties and interest may also apply.
Be wary of this scheme. If it’s offered to you, even by a registered agent, reject it and report it to the ATO.
If you suspect you’ve inadvertently become involved in an unlawful tax scheme, you should contact us immediately. If you proactively approach us, you may be eligible for a reduction in penalties.
We're protecting businesses by taking action against those promoting unlawful schemes. For information on the warning signs, and how to protect yourself, visit Tax schemes.