10. Tax avoidance schemes

Chapter 11A of the Duties Act 1997 has been removed. Instead, tax avoidance schemes will be administered under Part 10A of the Taxation Administration Act 1996. This means that all provisions will apply to taxation laws as defined in Part 1 of the Taxation Administration Act 1996.

Amendments to the Taxation Administration Act 1996 are aimed at deterring tax avoidance schemes.

Part 10A, Division 1 and 2 re-enact, in a modified form, the provisions of the duty avoidance provision in the Duties Act 1997, Chapter 11A which deter schemes to avoid duty. The amendment extends the duty avoidance provisions’ application to schemes for the avoidance of all kinds of tax liability rather than only a liability to pay duty.

Part 10A, Division 3 prohibits the promotion of tax avoidance schemes and also provides for the following

• ordering payment of civil penalties for breaches of the prohibition
• making injunctions in relation to proposed breaches of the prohibition
• entering voluntary undertakings in connection with tax avoidance schemes.

Part 10A Division 3 aims to deter the promotion of tax avoidance schemes in terms that are similar to equivalent provisions in the Taxation Administration Act 1953 of the Commonwealth.

When do these changes take effect?