22Arrangements etc. to avoid operation of Act

22 Arrangements etc. to avoid operation of Act

(1) Where:

(a) a scheme entered into or carried out by a person after 25 July 1982 would, but for this section, have the effect of in any way, directly or indirectly, defeating, evading or avoiding any liability of the person to pay recoupment tax; and

(b) it would be reasonable to conclude or infer that the person entered into or carried out the scheme for the purpose of in any way, directly or indirectly, defeating, evading or avoiding any liability of the person to pay recoupment tax or future recoupment tax;

then, in any prescribed recovery proceedings, the scheme shall be treated as being void in so far as it would, but for this section, have the effect mentioned in paragraph (a) but without prejudice to such validity as the scheme may have for any other purpose. (2) Without limiting the generality of subsection (1), where:

(a) a person (in this subsection referred to as the taxpayer) is liable to pay an amount of recoupment tax to the Commissioner;

(b) after 25 July 1982, the taxpayer has transferred or transfers property to another person;

(c) the transfer would, but for this section, have the effect of rendering the taxpayer unable to pay the recoupment tax, or any part of the recoupment tax;

(d) having regard to:

(i) the manner and circumstances in which the transfer was made;

(ii) the nature of any connection (whether of a business, family or other nature) between the taxpayer and the other person referred to in paragraph (b); and

(iii) any other relevant circumstances;

it would be reasonable to conclude or infer that the transfer was made by the taxpayer for the purpose of rendering the taxpayer unable to pay the recoupment tax, a part of the recoupment tax or any future recoupment tax; and

(e) either of the following conditions is satisfied:

(i) the transfer was made by way of gift; or

(ii) having regard to the circumstances referred to in paragraph (d), it would be reasonable to conclude or infer that the person to whom the property was transferred believed or suspected that the transfer was made by the taxpayer for the purpose referred to in paragraph (d);

then, in any prescribed recovery proceedings, the transfer shall be treated as being void in so far as it would, but for this section, have the effect mentioned in paragraph (c) but without prejudice to such validity as the transfer may have for any other purpose. (3) A reference in this section to a scheme being entered into or carried out or a transfer of property being made by a person for a particular purpose shall be read as including a reference to the scheme being entered into or carried out or the transfer being made, as the case may be, by the person for 2 or more purposes of which that particular purpose is the dominant purpose. (4) In this section: