We’ve published a draft tax determination (TD) on the early stage investor tax offset scheme we alerted you to in December 2024.
Our view in the draft determination is that the anti-avoidance provisions in the Income Tax Assessment Act 1936 can apply to this scheme, potentially cancelling any tax benefit obtained by participants. This will apply to those who are involved in the scheme before, during or after the final determination is published.
The draft determination is currently open for consultation and we're seeking your feedback. We would also appreciate your help encouraging clients to have their say if the determination is relevant to them. This feedback will help ensure our guidance provides the clarity needed by tax professionals and their clients.
How to provide feedback
For more information on how and where to send your feedback, see the draft determination. Submit your feedback before the deadline of 28 March.
Advice on tax schemes
We’re continuing to warn the community about the risks of getting involved in tax schemes, particularly those spreading online – like this one. We ask for your help to discourage clients from participating.
If a client is considering getting involved in this scheme, advise against it and outline the potential consequences. If a client has already invested, encourage them to contact us for help. If they proactively approach us, they may be eligible for a reduction in any penalties.
For more information visit Recognising, rejecting and reporting unlawful tax and super schemes.