The Australian Tax Office has issued a taxpayer alert warning people about sham arrangements promoted as ‘mortgage management plans’ which promise to help home owners repay their home loan sooner and claim tax deductions to which they are not entitled.
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.
“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.â€
