Treasury Laws Amendment (Tax Accountability and Fairness) Act 2024 (37 of 2024)

Schedule 1   PwC response - Promoter penalty law reform

Taxation Administration Act 1953

32   After subsection 290-65(1) in Schedule 1

Insert:

(1A) A *scheme is also a tax exploitation scheme if, at the time of the conduct mentioned in subsection 290-50(1):

(a) one of these conditions is satisfied:

(i) if the scheme has been implemented - Part IVA of the Income Tax Assessment Act 1936 applies to the scheme because of section 177DA or 177J of that Act;

(ii) if the scheme has not been implemented - it is reasonable to conclude that, had the scheme been entered into or carried out, Part IVA of that Actwould apply to the scheme because of section 177DA or 177J of that Act; and

(b) one of these conditions is satisfied:

(i) if the scheme has been implemented - it is reasonable to conclude that an entity that (alone or with others) entered into or carried out the scheme, or part of it, did so for a principal purpose of, or for more than one principal purpose that includes a purpose of, that entity or another entity getting a *scheme benefit from the scheme;

(ii) if the scheme has not been implemented - it is reasonable to conclude that if an entity (alone or with others) had entered into or carried out the scheme, it would have done so for a principal purpose of, or for more than one principal purpose that includes a purpose of, that entity or another entity getting a scheme benefit from the scheme; and

(c) one of these conditions is satisfied:

(i) if the scheme has been implemented - it is not *reasonably arguable that the scheme benefit is available at law;

(ii) if the scheme has not been implemented - it is not reasonably arguable that the scheme benefit would be available at law if the scheme were implemented.