Tax Fraud: When is Tax Avoidance a Criminal Offence?

TAXATION ISSUES: EXISTING AND EMERGING, pp. 79-100, Maples and Sawyer, eds., The Centre for Corporate and Commercial Law

20 Pages Posted: 1 Jul 2010 Last revised: 27 Jan 2012

See all articles by Craig Elliffe

Craig Elliffe

University of Auckland - Faculty of Law

Multiple version iconThere are 2 versions of this paper

Date Written: June 30, 2010

Abstract

This article looks at the complex situation arising when there is a deliberate arrangement to avoid income tax and the consequences which can arise where the matter strays into the criminal jurisdiction. Knowing when an arrangement is an arrangement to avoid tax is no easy matter. The New Zealand courts have taken the view that taxpayers with arrangements close to the line of tax avoidance will have to live with uncertainty. Can taxpayers and their advisers involved in tax avoidance schemes face even more dire consequences than those arising through the disallowance of their taxation advantage and imposition of shortfall civil penalties? This article looks at when tax avoidance schemes not only cross the line of acceptable tax planning and become void for tax purposes, but go further and cross the line of legality.

In such situations consequences may arise for advisors as well as taxpayers.

Keywords: tax evasion, pecuniary advantage, prosecution for tax offences, tax fraud, tax offences

JEL Classification: K34

Suggested Citation

Elliffe, Craig Macfarlane, Tax Fraud: When is Tax Avoidance a Criminal Offence? (June 30, 2010). TAXATION ISSUES: EXISTING AND EMERGING, pp. 79-100, Maples and Sawyer, eds., The Centre for Corporate and Commercial Law, Available at SSRN: https://ssrn.com/abstract=1633149

Craig Macfarlane Elliffe (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

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