Published on 01 Mar 11
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
Parliament's response to the threat to revenue posed by the occult art of dividend stripping culminated in 1981 with specific provisions targeted at the practice being included in Part IVA. Relevantly, Part IVA applies to schemes by way of or in the nature of dividend stripping or having substantially the same effect as such schemes (s177E). In the intervening period, s177E has been considered by both the High Court and again recently by the Full Federal Court. Against that background, this article seeks to answer the following related questions: "Has s177E achieved its purpose, and who is responsible for that result?" The thesis of this article is that, contrary to early expectations, s177E has achieved its purpose and that it is principally the courts rather than Parliament, tax advisers or taxpayers that deserve credit for this result.
Chris, FTI, is a barrister at the New South Wales Bar. He has 15 years experience in tax, including five at the Bar. He regularly advises and appears for taxpayers and the Commissioner. Many of his matters involve issues concerning the taxation of direct and indirect interests in land, including Div 855 (TARP) and landholder duty.
- Current at
17 December 2015