The Bankruptcy Legislation Amendment (anti-avoidance and other measures) Bill was originally introduced on 14 May 2004 to address the issues of high-income earners using bankruptcy legislation to avoid meeting their tax obligations. The Bill's proposed amendments planned to make disposition orders retrospective with no carry back time limit, and reverse the onus of proof by incorporating the concept of a rebuttable presumption.  
 
The recommendations follow a 2001 report by the Joint Taskforce on the use of Bankruptcy and Family Law schemes to avoid payment of tax, which aimed to address incidents of a small but significant number of high-income tax debtors – typically high earning fee-for-service professionals – using bankruptcy to avoid meeting their tax obligations. These debtors have the ability to pay their debts, but instead fund a lifestyle made possible only through the non-payment of tax and the build up of assets in the names of related parties.  
 
While the ICAA supports amendments to stamp out the abuse or manipulation of the bankruptcy system, it is concerned the amendments will have a significant, retrospective impact on Chartered Accountants and their clients, not just the high-income professionals targeted in the original recommendations. Thousands of people in small business, who are required to issue personal guarantees in the normal course of securing funding for their business, are potentially impacted.