Income tax 2016

Section 974-80 ITAA97: The current state of play

Source: The Tax Specialist Journal Article

Published Date: 1 Jun 2016


Section 974-80, which is part of the debt and equity rules in Div 974 of the Income Tax Assessment Act 1997, is described as an integrity or anti-avoidance measure. Few sections of the Act have created as much consternation as this section. From a seemingly innocuous beginning, s 974-80 morphed from a tightly focused avoidance provision into one with the scope and strength to force the restructure of publicly listed groups.

This article provides an overview of the history of s 974-80, including the latest proposal for amendment, describes how the section was used to attack and largely annihilate certain financing structures, and demonstrates the current complexities facing certain stapled groups by stepping through various arguments for and against the operation of s 974-80 to cross-staple loans. The article concludes by looking at the current landscape and the role that the section may continue to play in the foreseeable future.

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.


Income tax 2016

Share this page