What is a tax shelter arrangement?



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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.
Last modified: 18 Jun 2002QC 27429