An unlawful tax scheme involves the deliberate exploitation of our tax and super systems. We take these schemes seriously and will take action when they're not lawful.
Anyone who promotes unlawful tax schemes is taking big risks. They risk our attention, serious penalties, as well as their reputation. They're also risking their clients' money for their own financial gain.
We continue our focus on deterring and disrupting promoters of unlawful tax schemes through the Tax Avoidance Taskforce.
We use the promoter penalty laws to take action against promoters of unlawful tax schemes, regardless of the firm size, occupation, position in their organisation or standing in the tax community. Read our media release about a case that is currently before the Federal Court.
We publish the outcomes of court cases on our website. Two Federal Court judgements from 2021 show how seriously the courts take these matters:
- $22.68 million in penalties for a tax agent working as an R&D adviser
- $9.4 million in penalties for a trio of promoters.
How you can help
We know that most advisers do the right thing and give independent and objective tax and super advice to their clients. You can help protect yourself, your clients, and your industry by:
- understanding the warning signs of unlawful tax schemes
visit www.ato.gov.au/taxschemes for more information - reporting suspected unlawful tax schemes by completing our confidential tip-off form
- advising clients against getting involved in unlawful tax schemes
- encouraging clients who might be caught up in an unlawful tax scheme to talk to us so we can work with them to resolve any problems.
See our website for more information about Protecting your clients and practice from tax avoidance and evasion schemes, and managing promoter penalty risks.