Following the recent High court decision in Vanderstock v Victoria [2023] HCA 30, Revenue NSW has become aware of certain advisors promoting actions that may qualify as tax avoidance schemes. Revenue NSW is looking closely at these arrangements in the context of the promoter penalty provisions of the Taxation Administration Act 1996.

When contravened these provisions carry penalties of up to $1,109,900 for individuals and $5,549,500 for corporations.

Revenue NSW continues to administer NSW’s taxation and revenue statutes as written. We therefore recommend that advisors:

• Familiarise themselves with Part 10A of the Taxation Administration Act 1996 (which contain the promoter penalty provisions); and
• Exercise care in advising clients on action they might take in respect of a tax liability that could comprise a tax avoidance scheme.