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IG 12/01
14 Jun 2012

Goods and services tax; income tax - 'sham'

This interpretation guideline contains the Commissioner’s view on the law on sham. The essential characteristic of a sham is pretence. A sham exists where the parties intend the transaction documents to mislead third-parties as to the true nature of the relationship between the parties. The guideline sets out the meaning of sham, when sham can be alleged, how the courts determine whether this is a sham, and the consequences of a finding of sham.