Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Crimes (Taxation Offences) Act 1980
Summary of proposed amendments
The proposed amendments will make it a criminal offence to enter into an arrangement with a purpose of securing that a company or trustee will be unable to pay the superannuation guarantee charge.
Explanation of proposed amendments
The Crimes (Taxation Offences) Act came into operation on 4 December 1980 and provides criminal sanctions against persons who engage in stripping transactions designed to ensure that a company or trust is rendered incapable of paying income tax or sales tax. Such schemes became known as "bottom of the harbour" schemes. Since that time the Crimes (Taxation Offences) Act has been amended on a number of occasions to include other taxes, such as the petroleum resource rent tax and the training guarantee charge, within the categories of taxes subject to the Crimes Taxation Offences) legislation.
This Bill will include the superannuation guarantee charge in the category of taxes mentioned above. Accordingly, it will then be an offence to enter into an arrangement with a purpose of securing that a company or trustee will be, or will be likely to be, unable to pay superannuation guarantee charge that is then payable or that will, or may reasonably be expected to, become payable in the future.
Commencement date
The amendments to the Crimes Taxation Offences) Act 1980 apply from 1 July 1992.