Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:3_1:p3
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 3/6)
Character Range: 61428–64131

in relation to an entity's involvement in a *tax exploitation scheme more than 4 years after the entity last engaged in conduct that 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 *product ruling more than 4 years after the entity last engaged in conduct in relation to implementation of the scheme.

 (6) However, the limitation in subsection (4) or (5) does not apply to a *scheme involving 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
 (b) 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;
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.

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 markets the scheme or 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) consideration in respect of that marketing or encouragement; and
 (c) having regard to all relevant matters, it is reasonable to conclude that the entity has had a substantial role in respect of that marketing or encouragement.

 (2) However, an entity is not a promoter of a *tax exploitation scheme merely because the entity provides advice about the *scheme.

 (3) An employee is not to be taken to have had a substantial role in respect of that marketing or encouragement merely because the employee distributes information or material prepared by another entity.

290‑65  Meaning of tax exploitation scheme

 (1) A *scheme is a tax exploitation scheme if, at the time of the conduct mentioned in subsection 290‑50(1):
 (a) one of these conditions is satisfied:
 (i) if the scheme has been implemented—it is reasonable to conclude