14 February 2002

Crackdown on promoters of aggressive tax schemes

Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today announced that the Federal Government is considering a tough new crackdown on promoters of tax avoidance schemes.

"The Government is in the process of developing a proposal to enhance the type and range of sanctions needed to tackle promoters of tax avoidance schemes," Senator Coonan said.

"The principle behind the development of this proposal will be to strike a balance between stopping tax cheats while ensuring fairness for ordinary taxpayers."

"I expect that there will be broad public consultation on the proposal prior to the development of any legislative amendments."

The announcement coincides with the new settlement offer made today by the Commissioner of Taxation to investors in mass marketed schemes.

Around 40,000 investors will be able to take advantage of the Commissioner's announcement.

The Minister for Revenue and Assistant Treasurer, Senator Coonan, has said that the Government is committed to a fair and reasonable taxation system.

"It is important to get the right balance between fairness to the community by protecting their revenue base, and fairness to participants who were caught up in mass market schemes by unscrupulous promoters."

"I encourage investors to consider the proposal carefully and take appropriate advice."