Commonwealth Consolidated Acts Commonwealth Consolidated ActsWhere:
(a) a company or trustee enters into a transaction by way of selling or leasing goods to a person (including another company) in such circumstances that income tax will become payable by the company or trustee in relation to the transaction;
(b) a person is, in any way, by act or omission, directly or indirectly, concerned in, or party to, the entry by the company or trustee into that transaction knowing, or having reasonable grounds for believing:
(i) that, or that it is likely that:
(A) the sale value of the goods, for the purposes of the Income Tax Assessment Act, will be altered by the Commissioner in pursuance of a power to do so conferred on him or her by some one or other of those Acts; or
(B) in a case to which clause (A) does not apply--the whole, or a substantial part, of the price payable for selling or leasing the goods has been, or is to be, paid to a person (including a company) other than the first - mentioned company or trustee otherwise than on account of the first - mentioned company or trustee, whether or not as agent for the first - mentioned company or trustee;
(ii) that income tax will become payable in relation to the transaction; and
(iii) that, if income tax becomes due and payable in relation to the transaction, the company or trustee will be unable, or will be likely to be unable, at the time when the income tax becomes due and payable, to pay some or all of the aggregate of:
(A) the income tax that will then be payable by the company or trustee in relation to the transaction;
(B) the income tax (if any) that will then be payable by the company or trustee in relation to the previous transactions, operations and acts of the company or trustee (if any); and
(C) the income tax that may reasonably be expected by the person first mentioned in this paragraph to be then payable by the company or trustee by reason of the Commissioner altering the sale value of any goods in pursuance of a power to do so conferred on him or her by the Income Tax Assessment Act; and
(c) income tax becomes due and payable by the company or trustee in relation to the transaction;
the person first mentioned in paragraph (b) commits an offence.
Penalty: Imprisonment for 10 years or 1,000 penalty units, or both.