With the new financial year about to start, it’s tempting to sign up for investments that claim to reduce your tax bill. The Australian Taxation Office (ATO) is anxious to remind you that any scheme which appears to promise reduced tax with no risk is likely to be problematic.
Cost cutting picture from Shutterstock
“Tax avoidance schemes are no longer the blatant too good to be true offers seen in the past,” Tax Commissioner Chris Jordan warns. “Many modern tax avoidance schemes are complex structures that are difficult for even experienced investors to identify.”
“If you are getting back more money than you put in with no risk, and if no real goods or services are being provided, it is likely to be a tax avoidance scheme and could lead to significant tax penalties,” Jordan added in an ATO release.
Any tax-related decision benefits from independent advice — and that means having any scheme assessed by someone other than the person selling it to you.