Tax Commissioner Michael D’Ascenzo said while these arrangements may appear attractive, people should be warned they will face close scrutiny by the Tax Office.

“These arrangements are essentially about people refinancing their home loan and establishing what appears to be an investment loan to fund the purchase of shares in a bogus company,” Mr D’Ascenzo said.

“We identified these arrangements through our regular refund checks which lead us to the promoter.

“We are currently contacting over 140 people involved in these asking them to review their circumstances and inviting them to make a voluntary disclosure where necessary.

“People who make a voluntary disclosure before we contact them for an audit will be entitled to a reduction in any penalties that may apply.

“Tax evasion schemes of this type may promise big financial returns, but those involved usually end up with a very large tax debt and substantial penalties or prosecution action when they do get caught.”

Taxpayers wishing to make a voluntary disclosure should call the Tax Office on 1800 177 006.

More information

Taxpayers who are unsure about their own circumstances should seek independent advice or apply for a private ruling from the Tax Office.