Potentially dodgy tax schemes are being promoted online and offered to people when they least expect it.
We’re urging individuals and businesses to be wary of tax schemes promoted online (including via social media) promising to significantly reduce or avoid tax. Getting involved can attract heavy penalties.
Our website lists examples of tax schemes we are concerned about. Recently, we’ve seen one unlawful tax scheme encouraging people to dodge their taxes by setting up a purported not-for-profit foundationOpens in a new window and organising their finances to look like their income belongs to it.
Another recent scheme offers would-be investors the opportunity to invest into a start-up that allegedly qualifies as an early stage innovation company, to benefit from the associated tax offset. We’re concerned investors won’t qualify for this.
Such schemes have the potential to entice honest people who don’t fully understand what they’re getting into. Getting involved is risky.
Detecting and taking action on promoters of unlawful tax schemes is a priority for our Tax Avoidance Taskforce (TAT). A recent example of TAT action is the Federal Court handing down $13.6 million in penalties to research and development scheme promoters we investigated.
Don’t fall for promoter tricks
- Do your research before making tax decisions – you’re ultimately responsible for your own taxes. Even if you get bad advice.
- For too-good-to-be-true offers, get early, independent advice from a registered tax professional.
- If you’ve unintentionally landed in a scheme, contact us immediately. Approaching us may make you eligible for a reduction in any penalties.
