In 1980, the Crimes (Taxation Offences) Act 1980 put an end to bottom of the harbour schemes. Under the act it became a criminal offence for any person to make a company or trust unable to pay tax debts (income tax, sales tax, etc.), or to aid or abet any person or company doing so. The act thus caught both those in the schemes and the promoters of such schemes. It made it unnecessary to go through the crime of defrauding the Commonwealth that had been so poorly handled at the Deputy Crown Solicitor above.
This act was controversial at the time, since tax avoidance was (and perhaps still is) regarded as something less than an outright crime. Tax matters might normally be addressed by closing a revenue loophole, the act instead treated bottom of the harbour schemes like frauds.
Read more about this topic: Bottom Of The Harbour Tax Avoidance
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