Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_2:p7
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 7/16)
Character Range: 1375582–1378221

resulted in the entity or another entity being a *promoter of the tax exploitation scheme.
 (5) The Commissioner must not make an application under section 290‑50 in relation to an entity's involvement in a *scheme that has been promoted on the basis of conformity with a *public ruling, *private ruling or *oral ruling more than 6 years after the entity last engaged in conduct in relation to:
 (a) if the scheme has been implemented—the implementation of the scheme; or
 (b) if the scheme has not been implemented—the promotion of the scheme.
 (6) However, the limitation in subsection (4) or (5) does not apply to *schemes that involve, or if implemented would involve, tax evasion.

Exception where entity does not know result of conduct
 (7) The Federal Court of Australia must not order an entity to pay a civil penalty in relation to the entity's engaging in conduct:
 (a) that results in another entity being a *promoter of a *tax exploitation scheme; or
 (aa) that results in a *scheme that is materially different from that described in a *public ruling, *private ruling or *oral ruling being promoted on the basis of conformity with that ruling; or
 (b) that results in a scheme that has been promoted on the basis of conformity with a public ruling, private ruling or oral ruling being implemented in a way that is materially different from that described in the ruling;
if the entity satisfies the Court that the entity did not know, and could not reasonably be expected to have known, that the entity's conduct would produce that result.
 (7A) The other entity referred to in paragraph (7)(a) does not include:
 (a) if the entity mentioned first in subsection (7) is a partner in a partnership:
 (i) the partnership; or
 (ii) someone who was a partner in the partnership when the alleged conduct occurred; or
 (b) if the entity mentioned first in subsection (7) is a trustee of a trust:
 (i) the trust; or
 (ii) if the trust has more than one trustee—someone who was also a trustee of the trust when the alleged conduct occurred.

Employees
 (8) The Commissioner must not make an application under section 290‑50 in relation to an individual's involvement in a *scheme as an employee if the Federal Court of Australia has ordered the individual's employer to pay a civil penalty under this Division in relation to the same scheme.

290‑60  Meaning of promoter
 (1) An entity is a promoter of a *tax exploitation scheme if:
 (a) the entity:
 (i) markets the scheme; or
 (ii) otherwise encourages the growth of the scheme or interest in it; and
 (b) the entity or an *associate of the entity receives (directly or indirectly) a