The Australian Taxation Office (ATO) is cautioning individuals to be skeptical of too-good-to-be-true plans they may see online. It has actually observed an uptick in dodgy tax obligation plans that “lure in honest people” by guaranteeing outstanding advantages.
Many of the plans provide methods to lower or prevent paying tax obligation entirely and the ATO claimed that must work as a large warning. The tax obligation workplace’s Acting Deputy Commissioner Sarah Taylor claimed you require to have your wits regarding you while scrolling the web.
“Sometimes tax schemes can be peddled as investment schemes. We don’t want to see honest people lured into unlawful tax schemes with false promises of high returns and tax savings – if an offer seems too good to be true, it probably is,” she claimed.
“Those who invest in unlawful tax schemes stand to lose their hard-earned cash, and risk paying tax with interest and heavy penalties.
“Promoters of these plans are commonly opportunistic and target susceptible individuals. Protect on your own and your cash by obtaining guidance from a signed up tax obligation professional prior to devoting to anything.”
The ATO singled out one recent scheme that asked people to invest in a start-up company that claimed to qualify as an early-stage innovation company (ESIC).
Wannabe investors are told that by plunging their cash into an ESIC, they can claim the early-stage investor tax offset on shares purchased through the scheme.
However, the tax office is dubious about the ESIC claims for these companies and investors might not be able to access the promised tax benefits.
Another scheme the ATO has noticed is one tricking Aussies into thinking they can avoid paying tax if they set up a ” charitable structure” and put their income into it.
This method won’t actually allow you to dodge the taxman and you’ll still have to cough up the dough.
“Promoting and taking part in illegal tax obligation plans are not victimless criminal activities,” Taylor added.
“Those that select to take part in these behaviors are trying to acquire an unjust benefit over those that do the appropriate point.
“We take targeted action against unlawful tax schemes that promote tax avoidance behaviours and against those who promote these schemes. We are committed to helping protect the community against misinformation about schemes spread on various channels.”
