Taxation Administration Act 1999

If the commissioner is satisfied that a person has used a tax avoidance scheme, the commissioner may—

determine the tax to which the person and other people would have been liable apart from the use of the scheme; and

take the action that the commissioner considers necessary to allow assessments of tax so determined.

The commissioner’s decision in relation to a tax avoidance scheme used by a person is an internally reviewable decision (see s 107, def internally reviewable decision), and the commissioner must give an internal review notice to the person (see s 107B).

If the commissioner makes a determination under subsection (1), each person benefiting from the scheme is liable for tax in accordance with the determination.

This section applies in relation to a scheme wherever and whenever entered into.

This section does not prevent a person from agreeing to pay tax payable by another or from entering a tax-sharing agreement.

In this section:

any plan, action or conduct of a person; and

any trust, agreement, arrangement or other understanding between people, whether oral or in writing, whether express or implied and whether or not it is intended to be legally binding; and

any series or combination of schemes mentioned in paragraphs (a) and (b).

the way in which the scheme was entered into or carried out; or

the form and substance of the scheme; or

the time when the scheme was entered into and the length of time during which it was carried out; or

the extent to which the scheme reduces the tax that would otherwise be payable; or

whether the scheme has resulted in, or can reasonably be expected to result in, a change in any person’s financial position, or in any other consequence for any person; or

the nature of any connection (whether of a business, family or any other nature) between the person and a person mentioned in paragraph (e);