From www.accountantsdaily.com.au: The ATO has issued a draft determination, TD 2025/D1, addressing tax avoidance schemes that exploit the early-stage investor tax offset.

The ATO believes these schemes often misrepresent startups as qualifying early-stage innovation companies (ESICs), allowing investors to claim benefits without genuine investment risk.

The ATO warns that anti-avoidance provisions could nullify tax benefits for participants involved before, during, or after the determination is published.