A former big four accounting firm partner is alleged to have helped clients reduce their tax on tens of millions in profits by shifting income to loss-making third parties who took payments for their part in the scheme.

The Commissioner of Taxation is suing the ex-partner in the Federal Court and seeking declarations of the breaches and substantial fines. The maximum fine for an individual found to promote a tax exploitation scheme is the greater of $1.5 million, or twice the benefits obtained, for each year.