A costly incentive: $13.6m promoter penalty hit

This decision was insightful as it sets out a number of details found, by the Federal Court of Australia, to be a ‘tax exploitation scheme’, as detailed by Mukul Relan, David Vuong, Melissa Bader, and Georgia King-Siem.

The Federal Court of Australia, on 16 December 2024, ruled in favour of the Commissioner of Taxation, deciding that Julian Bakarich, a Sydney business coach, along with his co-director, a former tax agent, had engaged in conduct that resulted in tax exploitation of the Research and Development Tax Incentive (R&DTI). They were ordered to pay $13.6 million in Commonwealth civil penalties. Full judgment: Commissioner of Taxation v Bakarich (No 2) [2024] FCA 1448 Key principles Kennett J...

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Authors: Mukul Relan, David Vuong,

Published Date: 18 December 2024