PM Transcripts

PRIME MMSITER
Thursday, 23 September 1982 FOR MEDIA
TAX AVOIDANCE REPORTS REBUTTAL
In some recent newspaper and other media coverage, it has been
said or implied or suggested that I was aware in 1977 of the
existence of Bottom of the Harbour taxation schemes.
Statements to that effect are wholly and demonstrably false
and those responsible were guilty at the least of the grossest
of negligence.
To set the record straight the position is as follows
On 15 July 1977 I wrote to the Treasurer drawing his attention to
a paper which had been prepared by a person outside the Government
and that set out a number of tax avoidance schemes which were said
to be in current use. I said believe that the documents should
be examined most urgently and that if the schemes are correctly
described we should be looking at appropriate legislation at
the earliest date".
During 1978 and 1979 many of the schemes outlined in the list
I forwarded to the Treasurer in July 1977 were legislated against.
The paper on which I sought an urgent examination set out
particulars of 13 tax schemes including one which was described
as " sale of companies with current profits".
None of these schemes were Bottom of the Harbour schemes.
The scheme which has been seized on by elements of the media,
namely the one just referred to, was described as one in which
the company broker, once acquiring the company with company
pro fits, injects tax losses into the company to avoid existing
company tax liability. Schemes of that kind were legislated
against with effect from 8 A1 pril1978 that is, within 9
months of my 15 July 1.977 1-0tter t-thc! Troasurer.
I find it difficult to understand how any informed person acting
in good faith could have so misunderstood what was so clearly set
forth in the tabled documents on this subject.
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