CRIMES (TAXATION OFFENCES) ACT 1980

PART II - OFFENCES RELATING TO INCOME TAX  

Note:

The offences in this Part are applied to other taxes by the later Parts of this Act. These taxes are:

  • (a) (Repealed by No 101 of 2006 )
  • (b) (Repealed by No 101 of 2006 )
  • (c) fringe benefits tax (see Part IV );
  • (d) petroleum resource rent tax (see Part V );
  • (e) (Repealed by No 101 of 2006 )
  • (f) superannuation guarantee charge (see Part VII );
  • (g) goods and services tax (see Part VIII );
  • (h) wine equalisation tax (see Part IX );
  • (i) luxury car tax (see Part X ).
  • (j) (Repealed by No 96 of 2014)
  • SECTION 8   8   OFFENCES IN RELATION TO PARTICULAR TRANSACTIONS  


    Where:


    (a) a company or trustee enters into a transaction by way of selling or leasing goods to a person (including another company) in such circumstances that income tax will become payable by the company or trustee in relation to the transaction;


    (b) a person is, in any way, by act or omission, directly or indirectly, concerned in, or party to, the entry by the company or trustee into that transaction knowing, or having reasonable grounds for believing:


    (i) that, or that it is likely that:

    (A) the sale value of the goods, for the purposes of the Income Tax Assessment Act, will be altered by the Commissioner in pursuance of a power to do so conferred on him or her by some one or other of those Acts; or

    (B) in a case to which clause (A) does not apply - the whole, or a substantial part, of the price payable for selling or leasing the goods has been, or is to be, paid to a person (including a company) other than the first-mentioned company or trustee otherwise than on account of the first-mentioned company or trustee, whether or not as agent for the first-mentioned company or trustee;

    (ii) that income tax will become payable in relation to the transaction; and

    (iii) that, if income tax becomes due and payable in relation to the transaction, the company or trustee will be unable, or will be likely to be unable, at the time when the income tax becomes due and payable, to pay some or all of the aggregate of:

    (A) the income tax that will then be payable by the company or trustee in relation to the transaction;

    (B) the income tax (if any) that will then be payable by the company or trustee in relation to the previous transactions, operations and acts of the company or trustee (if any); and

    (C) the income tax that may reasonably be expected by the person first mentioned in this paragraph to be then payable by the company or trustee by reason of the Commissioner altering the sale value of any goods in pursuance of a power to do so conferred on him or her by the Income Tax Assessment Act; and


    (c) income tax becomes due and payable by the company or trustee in relation to the transaction;

    the person first mentioned in paragraph (b) commits an offence.

    Penalty: Imprisonment for 10 years or 1,000 penalty units, or both.




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