29 Jan 14 Section 177EA and dividend washing schemes - TD 2014/D1
On 15 January 2014, the ATO issued for public comment by 14 February 2014 draft Taxation Determination TD 2014/D1 entitled "Income tax: can section 177EA of the Income Tax Assessment Act 1936 apply to a 'dividend washing' scheme of the type described in this Taxation Determination?"
The draft answers the question posed as follows:
"Yes. The application of Part IVA of the Income Tax Assessment Act 1936 to any particular scheme depends on a careful weighing of all the relevant facts and surrounding circumstances of each case. Without all relevant information, it is not possible to state definitively whether a provision in Part IVA applies to a particular scheme. However, the Commissioner's view is that section 177EA will generally apply to a 'dividend washing' scheme of the type described below at paragraphs 2 to 10 of this draft Determination."