Improving the operation of the anti-avoidance provisions in the income tax law

• Bill Shorten
• Treasury

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22 November 2010The Government announced its intention to review the operation of the anti-avoidance provisions in the income tax law in the 2009‑10 Budget.

"Tax avoidance poses a threat to the integrity of the tax system. It involves the exploitation of structural loopholes in the law for personal gain, which is unfair on honest taxpayers," Mr Shorten said.

The discussion paper outlines a range of proposals to make the laws more effective and easier to use, such as rationalising terminology, consolidating provisions and repealing inoperative provisions.

The proposals also aim to produce more flexible rules that are less likely to require amendments in the future.

"The need to review anti-avoidance provisions in the income tax laws has been identified on a number of occasions in recent years," he said.

"This review will ensure those provisions are able to deal with existing and emerging risks, and determine whether there are any specific anti‑avoidance provisions in the law that are redundant and can be removed, or can otherwise be harmonised and consolidated."

"This review is the most comprehensive review of the anti‑avoidance provisions undertaken to date. I encourage all interested and affected parties to make submissions to the discussion paper," the Assistant Treasurer said.

Furthermore, it will send a message to those seeking to rip off the tax system that the Government remains committed to addressing structural loopholes that impact on the integrity of the tax system.