This audit would examine the effectiveness of the Australian Taxation Office’s (ATO’s) arrangements to deter, detect and deal with aggressive tax planning.

Tax planning or tax-effective investing involves taxpayers operating within the taxation law to arrange their financial affairs to keep their tax to a minimum. However, some taxpayers plan their tax affairs outside of the taxation law. This behaviour is referred to as aggressive tax planning and the ATO aims to deter, detect and deal with these taxpayers. One element of the ATO’s activities to address aggressive tax planning is the Domestic Promoter Initiative, which targets Australia-based promoters of tax schemes.