Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:3_1:p1
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 1/6)
Character Range: 56440–59243

1  After Division 288 in Schedule 1
Insert:

Division 290—Promotion and implementation of schemes

Table of Subdivisions

290‑A Objects of this Division
290‑B Civil penalties
290‑C Injunctions
290‑D Voluntary undertakings

Subdivision 290‑A—Objects of this Division

Table of sections

290‑5 Objects of this Division

290‑5  Objects of this Division

  The objects of this Division are:
 (a) to deter the promotion of tax avoidance *schemes and tax evasion schemes; and
 (b) to deter the implementation of schemes that have been promoted on the basis of conformity with a *product ruling in a way that is materially different from that described in the product ruling.

Subdivision 290‑B—Civil penalties

Table of sections

290‑50 Civil penalties
290‑55 Exceptions
290‑60 Meaning of promoter
290‑65 Meaning of tax exploitation scheme

290‑50  Civil penalties

Promoter of tax exploitation scheme

 (1) An entity must not engage in conduct that results in that or another entity being a *promoter of a *tax exploitation scheme.

Implementing scheme otherwise than in accordance with ruling

 (2) An entity must not engage in conduct that results in a *scheme that has been promoted on the basis of conformity with a *product ruling being implemented in a way that is materially different from that described in the product ruling.

Note: A scheme will not have been implemented in a way that is materially different from that described in a product ruling if the tax outcome for participants in the scheme is the same as that described in the ruling.

Civil penalty

 (3) If the Federal Court of Australia is satisfied, on application by the Commissioner, that an entity has contravened subsection (1) or (2), the Court may order the entity to pay a civil penalty to the Commonwealth.

Amount of penalty

 (4) The maximum amount of the penalty is the greater of:
 (a) 5,000 penalty units (for an individual) or 25,000 penalty units (for a body corporate); and
 (b) twice the consideration received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme.

Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Principles relating to penalties

 (5) In deciding what penalty is appropriate for a contravention of subsection (1) or (2) by an entity, the Federal Court of Australia may have regard to all matters it considers relevant, including:
 (a) the amount of the consideration received or receivable (directly or indirectly) by the entity and *associates of the entity in respect of the *scheme; and
 (b) the deterrent effect that any penalty may have; and
 (c) the amount of loss or damage incurred by scheme participants; and
 (d) the nature and extent of the contravention; and
 (e) the circumstances