106FWhat is a tax avoidance scheme?

#### 106F What is a tax avoidance scheme? 106F What is a tax avoidance scheme? > > (1) For the purposes of this Part, a tax avoidance scheme is a scheme that a person, whether alone or with others, enters into, makes or carries out for the sole or dominant purpose of enabling a tax liability to be avoided. > > > (2) It does not matter if the scheme is entered into, made or carried out wholly or partly outside New South Wales. > > > (3) In determining the sole or dominant purpose for which a scheme is entered into, made or carried out, any purpose related to avoiding a liability for foreign tax must be disregarded. > > > (3A) For Division 3, a scheme that results in, or may reasonably result in, the constitution of a group under the [Payroll Tax Act 2007](/view/html/inforce/current/act-2007-021), section 74A is taken to be a tax avoidance scheme. > > > > Note— > > > > Under the [Payroll Tax Act 2007](/view/html/inforce/current/act-2007-021), section 74(4), the Chief Commissioner may determine that an entity and a former entity that are influenced by a third party do not constitute a group if the Chief Commissioner is satisfied the influence of the third party on the entity and a former entity is not, or was not, intended to avoid tax. > > > (4) In this section— > > > > foreign tax means a duty, tax or other impost imposed under a law of another State, a Territory, the Commonwealth or a jurisdiction outside Australia. > > **s 106F:** Ins 2002 No 121, Sch 2 \[1\]. Rep 2007 No 21, Sch 4.3 \[2\]. Ins 2022 No 16, Sch 8\[6\]. Am 2023 No 18, Sch 9\[17\].