106KWhen does a liability to pay avoided tax arise?

#### 106K When does a liability to pay avoided tax arise? 106K When does a liability to pay avoided tax arise? > > (1) A liability to pay an amount of tax avoided by a person as a result of a tax avoidance scheme is taken to arise on the date the amount of tax avoided would have been payable if the tax avoidance scheme had not been entered into or made. > > > (2) Accordingly, a tax default is taken to have occurred on the date the amount of tax avoided would have been payable if the tax avoidance scheme had not been entered into or made. > > > > Note— > > > > This means that interest and penalty tax may be charged in addition to the amount of tax avoided. > > > (3) This section applies only if the Chief Commissioner issues a notice of assessment, or reassessment, of tax liability on the basis that a scheme is a tax avoidance scheme. > > **s 106K:** Ins 2002 No 121, Sch 2 \[1\]. Rep 2007 No 21, Sch 4.3 \[2\]. Ins 2022 No 16, Sch 8\[6\].