5Arrangements to avoid payment of income tax

#### 5 Arrangements to avoid payment of income tax (1) Where a person enters into an arrangement or transaction with the intention of securing, either generally or for a limited period, that a company or trustee (whether or not a party to the arrangement or transaction) will be unable, or will be likely to be unable, having regard to other debts of the company or trustee, to pay income tax payable by the company or trustee, the person commits an offence. (2) Where: (a) a person enters into an arrangement or transaction with the intention of securing, either generally or for a limited period, that a company or trustee (whether or not a party to the arrangement or transaction) will be unable, or will be likely to be unable, having regard to other debts of the company or trustee, to pay future income tax payable by the company or trustee; and (b) income tax becomes due and payable by the company or trustee; the person commits an offence. Penalty: Imprisonment for 10 years or 1,000 penalty units, or both.