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DUTIES ACT 2000 - SECT 89M What is a tax avoidance scheme?

DUTIES ACT 2000 - SECT 89M

What is a tax avoidance scheme?

    (1)     For the purposes of this Division, a "tax avoidance scheme" is a scheme that—

        (a)     directly or indirectly has tax avoidance as its purpose or effect; or

        (b)     directly or indirectly has tax avoidance as one of its purposes or effects, if the purpose or effect of tax avoidance is not merely incidental to another purpose or effect of the scheme

whether the scheme had that effect at the time that it was entered into, or only subsequently.

    (2)     In this Division—

"scheme" includes the whole or any part of—

        (a)     a contract, agreement, arrangement, understanding, promise or undertaking (including all steps and transactions by which it is carried into effect)—

              (i)     whether made or entered into orally or in writing;

              (ii)     whether express or implied;

              (iii)     whether or not enforceable;

        (b)     a plan, proposal, action, course of action or course of conduct, whether or not unilateral;

        (c)     a trust;

"tax avoidance" means—

        (a)     an elimination or reduction in the liability of a person for duty under this Part;

        (b)     a postponement in the liability of a person to pay duty under this Part.

S. 89N substituted by No. 38/2012 s. 5.