Miscellaneous 2012

Collateral challenge to s 177EA determinations: Part 1

Source: The Tax Specialist Journal Article

Published Date: 1 Jun 2012


Section 177EA, the specific rule in Pt IVA directed at franking credit trading and dividend streaming, is renowned and feared for its wide reach and low purpose threshold, which ensure that it is frustratingly easy for taxpayers to become entangled in its net. That being so, a capacity to recognise opportunities to challenge s 177EA determinations on judicial review or administrative law grounds can prove valuable, and an awareness of the key issues in the area and recent developments is essential knowledge for the tax adviser.

Part 1 of this article outlines some of the technical issues that can arise in challenging the exercise of the so-called “discretion” of the Commissioner to make a s 177EA determination. Part 2 of the article adds colour and meaning to Pt 1 by reviewing the terse and cryptic commentary in Mills v FCT on the discretionary aspects of s 177EA, and attempts to unpick some of the ciphers and codes woven into the first-instance judgment.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2012

Share this page