Crimes (Taxation Offences) Act 1980

PART II - OFFENCES RELATING TO INCOME TAX  

Note:

The offences in this Part are applied to other taxes by the later Parts of this Act. These taxes are:

(a) (Repealed by No 101 of 2006 )

(b) (Repealed by No 101 of 2006 )

(c) fringe benefits tax (see Part IV );

(d) petroleum resource rent tax (see Part V );

(e) (Repealed by No 101 of 2006 )

(f) superannuation guarantee charge (see Part VII );

(g) goods and services tax (see Part VIII );

(h) wine equalisation tax (see Part IX );

(i) luxury car tax (see Part X ).

(j) (Repealed by No 96 of 2014)

SECTION 7   ARRANGEMENTS TO SECURE INABILITY TO PAY INCOME TAX  

7(1)    

Where a person:

(a) enters into an arrangement or transaction;

(b) directly or indirectly, aids, abets, counsels or procures another person (including a company) to enter into an arrangement or transaction; or

(c) is, in any way, by act or omission, directly or indirectly concerned in, or party to, the entry by another person (including a company) into an arrangement or transaction;

knowing or believing that the arrangement or transaction will secure, or will be likely to secure, either generally or for a limited period, that a company or trustee (whether or not a party to the arrangement or transaction) will be unable, or will be likely to be unable, having regard to other debts of the company or trustee, to pay income tax payable by the company or trustee, the first-mentioned person commits an offence.

Penalty: Imprisonment for 10 years or 1,000 penalty units, or both.

7(2)    

Where:

(a) a person:

(i) enters into an arrangement or transaction;

(ii) directly or indirectly, aids, abets, counsels or procures another person (including a company) to enter into an arrangement or transaction; or

(iii) is, in any way, by act or omission, directly or indirectly concerned in, or party to, the entry by another person (including a company) into an arrangement or transaction;

knowing or believing that the arrangement or transaction will secure, or will be likely to secure, either generally or for a limited period, that a company or trustee (whether or not a party to the arrangement or transaction) will be unable, or will be likely to be unable, having regard to other debts of the company or trustee, to pay future income tax payable by the company or trustee; and

(b) income tax becomes due and payable by the company or trustee;

the first-mentioned person commits an offence.

Penalty: Imprisonment for 10 years or 1,000 penalty units, or both.

7(3)    
Where:

(a) a company or trustee:

(i) enters into an arrangement with a creditor for payments to be made, during a limited period, to the creditor by the company or trustee or by a person (including a company) at the direction of the company or trustee; or

(ii) enters into a transaction that involves the company or trustee making a payment to, or directing a person (including a company) to make a payment to, a creditor of the company or trustee; and

(b) the company or trustee enters into the arrangement or transaction with the intention:

(i) of securing, or attempting to secure, that the company or trustee will be able to continue to carry on business; or

(ii) of obtaining a financial benefit for the company or trustee;

neither subsection (1) nor subsection (2) applies to or in relation to that arrangement or transaction.

7(4)    
In subsection (3), a reference to a creditor of a company or trustee, in relation to an arrangement or transaction entered into by the company or trustee, shall be read as including a reference to a person (including a company) to whom money is payable by the company or trustee under, or by virtue of, the arrangement or transaction.