As we navigate the complexities of the digital age, the young and tech-savvy have always been on guard against online scams and schemes.

Yet, it's a concern also heavily affecting Aussies over their 60s.

The Australian Taxation Office (ATO) has recently issued a stern warning about a sinister new trend that's been catching out honest taxpayers.

The ATO saw a worrying increase in the number of dubious tax schemes circulating online.

These schemes come with the allure of significant tax savings.

Several schemes also offered promises of avoiding tax obligations altogether.

File your taxes properly with the help of a registered tax practitioner. Image Credit: Pexels/Tara Winstead

One scheme the ATO highlighted involved investing in a start-up company claiming to be an early-stage innovation company (ESIC).

Scammers entice investors with the prospect of claiming the early-stage investor tax offset on shares purchased through the scheme.

However, the ATO warned that these companies may not meet the requirements for ESIC status and could leave investors without the promised tax benefits.

ATO's Acting Deputy Commissioner Sarah Taylor urged the public to exercise caution when encountering such offers.

'Sometimes tax schemes can be peddled as investment schemes,' Commissioner Taylor prefaced.

'We don't want to see honest people lured into unlawful tax schemes with false promises of high returns and tax savings.'

'If an offer seems too good to be true, it probably is,' she ended.

There could be severe consequences if Aussies fall for these traps.

Victims could lose their hard-earned money and face the stress of dealing with heavy penalties.

It's a situation no one wants to find themselves in, especially when planning for a comfortable retirement.

Another concerning scheme involved the idea of setting up a 'non-profit foundation' to channel personal income and allow individuals to avoid taxes.

This method is both ineffective and illegal, as anyone who attempts these frauds could still be liable for their tax obligations.

To protect yourself and your finances, the ATO advised Aussies to seek help from a registered tax practitioner before committing to any investment or tax-saving strategy.

'We take targeted action against unlawful tax schemes that promote tax avoidance behaviours and against those who promote these schemes,' the ATO stated.

'We are committed to helping protect the community against misinformation about schemes spread on various channels.'

It's also essential to stay informed about the latest tax scams by visiting the ATO's website and subscribing to their alerts.

You may also report any dubious tax-related activities through their hotline 1800 060 062.

Key Takeaways

• The Australian Taxation Office warned against too-good-to-be-true tax schemes that promise to reduce or eliminate taxes.
• Acting Deputy Commissioner Sarah Taylor advised the public to be cautious and seek advice from registered tax practitioners before engaging in any investment schemes.
• The ATO expressed their scepticism toward certain schemes, such as investments in early-stage innovation companies (ESICs) or setting up 'non-profit foundations'.
• The ATO started taking action against promoters of unlawful tax schemes and those participating in tax avoidance.

Have you or someone you know encountered a too-good-to-be-true tax scheme? Share your experiences in the comments below to help raise awareness within our community.

 

[MariaG]

Tax Practitioner, good one.

Is it greed to wants the best return on our hard earned or is it greed that drives some to want to

Tax Practitioner, good one.

Is it greed to wants the best return on our hard earned or is it greed that drives some to want to take it.

It very well could be that greed is a motivator if one jumps in feet first, ready to fling money at an unknown without having it checked out first. Unfortunately it is a common human failing that those vipers prey upon.