Miscellaneous 2022

Promoter penalties

Source: The Tax Specialist Journal Article

Published Date: 1 Feb 2022


It has been 15 years since the introduction of the promoter penalty regime (PPR). Although there have only been a few notable cases before the courts, the focus and ambit of the regime has become clearer, and the courts have handed down significant penalties that reflect both the need to protect taxpayers and the community's attitude against such egregious activity. The PPR has become another weapon in the Commissioner's armoury for effecting change in attitudes and behaviour in the tax advisory landscape. Therefore, tax advisers now need to be aware about how their conduct may constitute a tax exploitation scheme, but more importantly, how such a scheme might be promoted. In this article, the author considers recent cases, including FCT v Bogiatto and FCT v Rowntree, and argues that what might seemingly be normal commercial behaviour between a tax adviser and a taxpayer can inadvertently transpose into prohibited conduct with the prospect of prosecution and substantial civil penalties. The author also considers the court's approach to assessing penalties and whether imprisonment could ultimately occur as a consequence of a promoter's conviction, and suggests that such an outcome is open to the court.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2022

Share this page