The Commissioner of Taxation has lodged an application in the Federal Court seeking orders for the imposition of a civil penalty under the Promoter Penalty Legislation.
The Commissioner will allege a former Ernst & Young (EY) tax partner, promoted a tax exploitation scheme.
As the matter is before the courts and no findings have been made, the ATO is limited in making any further comments.
The ATO has been working closely with the Tax Practitioners Board (TPB) on this matter.
Promoter Penalty Laws are in place to deter and disrupt the promotion and implementation of aggressive tax avoidance and evasion schemes.
The promotion of tax exploitation schemes undermines the integrity of the tax and super system and challenges community trust and confidence. These schemes create an uneven playing field for everyone, including businesses and advisers.
The ATO uses Promoter Penalty Laws to take action against alleged promoters of tax exploitation schemes, regardless of the firm size, occupation, position in their organisation or standing in the tax community.
If you are offered a tax avoidance or tax evasion scheme, you should reject it and report it to the ATO confidentially by:
- completing the tip-off form on the ATO website or in the ATO app ‘contact us’ section
- phoning the tip-off hotline on 1800 060 062
If you suspect that you have inadvertently become involved in a tax avoidance or tax evasion scheme you should also contact the ATO immediately. If you approach the ATO, you may be eligible for a reduction in any penalties imposed.
The ATO expects the utmost integrity of those providing advice in the tax system and will continue to take serious action against anyone who attempts to exploit or undermine the integrity of the tax system.