ATO extends tax scheme settlement
TheAustralian Taxation Office (ATO)has today extended by three weeks the deadline for investors to accept its settlement offer over mass marketed tax schemes.
The Tax Commissioner, Michael Carmody, announced today the window for accepting the offer, originally due to close this Thursday, would remain open until the 21st of June.
The decision follows last week’s victory by the ATO in theVincentcase, the second mass marketed tax schemes case to be tested in the Federal Court.
Like the Budplan decision handed down in March, the Federal Court found in favour of the ATO on theVincentcase, ruling against the arrangements used to create tax deductions through the schemes.
The extension of the deadline also comes after last week’s raid by the ATO on the Melbourne offices of three lawyers and accountants accused of being involved in the promotion of tax schemes.
Carmody says the raids were the first in a series to be conducted across Australia over coming weeks.
According to the ATO, almost 14,000 investors have already lodged an application to take up the tax scheme settlement offer.
Under the terms of the ATO’s offer, investors will have to pay back the tax deductions they received as a result of the tax schemes, although the will be able to claim their actual cash outlays as deductions. Investors will also avoid paying any penalties or interest on the tax debts they owe the ATO.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
