89MWhat is a tax avoidance scheme?

89M What is a tax avoidance scheme? (1) For the purposes of this Division, a ***tax avoidance scheme*** is a scheme that— (a) directly or indirectly has tax avoidance as its purpose or effect; or (b) directly or indirectly has tax avoidance as one of its purposes or effects, if the purpose or effect of tax avoidance is not merely incidental to another purpose or effect of the scheme— whether the scheme had that effect at the time that it was entered into, or only subsequently. S. 89M(1A) inserted by No. 16/2024 s. 42. (1A) To avoid doubt, a tax avoidance scheme includes a scheme under which an entry transaction is entered into in respect of land for the purpose of tax avoidance on subsequent acquisitions in landholders that hold the land. (2) In this Division— ***scheme*** includes the whole or any part of— (a) a contract, agreement, arrangement, understanding, promise or undertaking (including all steps and transactions by which it is carried into effect)— (i) whether made or entered into orally or in writing; (ii) whether express or implied; (iii) whether or not enforceable; (b) a plan, proposal, action, course of action or course of conduct, whether or not unilateral; (c) a trust; ***tax avoidance*** means— (a) an elimination or reduction in the liability of a person for duty under this Part; (b) a postponement in the liability of a person to pay duty under this Part. S. 89N substituted by No. 38/2012 s. 5.