Australian Taxation Office crackdown on family trust rorts causes alarm among tax advisers

There is concern the ATO will investigate past ‘red zone’ actions, raising the prospect of bills for back taxes, inflated by years of interest. Photograph: The AGE/Fairfax Media/Getty Images

A crackdown by the Australian Taxation Office on rorts involving family trusts has drawn alarm from some advisers as some of the practices under the microscope have become common practice.

Tax advisers are also concerned at the prospect the ATO will be examining the past behaviour of family trusts, raising the prospect of bills for back taxes, inflated by years of interest and penalties.