LABOR WILL DOUBLE PENALTIES FOR PEOPLE PROMOTING TAX DODGING
A Shorten Labor Government will protect the fairness of Australia’s tax system by putting a higher price on the heads of promoters who package the tricky schemes that cheat the tax system.
Tax avoidance has severe consequences for growth and equity in Australia. When individuals or companies don’t pay their fair share, they are increasing the tax burden on honest individuals and undermining the vital services that support us all.
Some of the most egregious forms of tax avoidance are available to those who can enlist a ‘brain behind the operation’ - a promoter. Promoting tax avoidance drains away revenue and erodes public confidence in the tax system.
Our current civil and criminal penalties related to tax matters do not match up to the penalties available in other areas of the law.
At the moment, the maximum penalties for promoting tax avoidance schemes are just over $1 million for an individual, and $5.25 million for a corporation.
A Shorten Labor Government would increase the promoter penalty regime to allow courts to impose fines of up to $2.1 million for an individual or $10.5 million for a body corporate, or three times the consideration received or receivable, directly or indirectly, by the entity or its associates in respect of the scheme.
THURSDAY, 11 OCTOBER 2018
Authorised by Noah Carroll, ALP, Canberra.