The Australian Tax Office has issued a comprehensive guide explaining what constitutes a tax avoidance scheme. It is pointed out that a tax planning arrangement that goes beyond the policy intent of the law and involve deliberate approaches to exploit the tax system is a tax avoidance scheme. It is emphasized that these schemes are not limited to the ‘too good to be true’ type of arrangement but can be more sophisticated than many people realise. It is cautioned that because some tax schemes are very cleverly dressed up as seemingly legitimate arrangements, it’s important to be able to recognise them. Examples are given of typical “tax avoidance schemes” which fall foul of the law.
The guide is of immense practical importance in the Indian context especially in the light of the Draft General Anti-Avoidance Rules (GAAR) Guidelines which were introduced recently.
Guide To Tax Avoidance Schemes Issued By Aus Tax Office (646.2 KiB, 1,851 hits)
In A Jugular vein >
Excerpts:
Q
Our commitment to you
…… accurate, consistent and clear information to help you understand your rights and
entitlements and meet your obligations.
If you follow our information in this publication and it turns out
to be incorrect, or it is misleading and you make a mistake as
a result, we must still apply the law correctly. ….
If you make an honest mistake in trying to follow our information
in this publication and you owe us money as a result, we will
not charge you a penalty. However, we will ask you to pay
the money, and we may also charge you interest. …..
UQ
As is ever my wont, I was trying to give it a read, repeated twice over; alas, only to be left bewildered, bedevilled.
Only two possibilities- am short witted; OR the taxpaying- brethren across the border are too sharp witted , and enough to make out what really is the Revenue’s professed ‘commitment’ for them to follow as expected .
Back home, what any quick witted Mrs Grundy has to say?