What is the difference between a legitimate tax planning arrangement and a tax scheme?

 

Promoters can be very skillful at convincing you that the scheme is perfect for your circumstances.

 

 

 

Generally the rule of thumb is that if it sounds too good to be true, it probably is.

 

 

Talk to an experienced independent adviser or visit

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If you are still unsure you may apply for a private ruling at:

 

 

Taxpayers have the responsibility to declare all their assessable income and claim only the deductions and offsets they are entitled to in their annual income tax returns. You need to be careful before entering into arrangements that affect your tax affairs.

 

There are serious consequences for taxpayers entering into arrangements that are later shown to be tax schemes.

 

If you invest in a tax scheme, you are risking your original investment plus you could have to pay back any missing tax with interest and penalties long after the promoter and your money are gone.

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances. “Liability limited by a scheme approved under Professional Standards Legislation”