Anti-avoidance Consolidation 2012

The curious case of the consolidation counterfactual - Macquarie

Source: Taxation In Australia Journal Article

Published Date: 1 Mar 2012


In the context of assessable income, a taxpayer obtains a tax benefit in connection with a scheme if an amount is not included in the assessable income where that amount would have been included, or might reasonably be expected to have been included, in the assessable income if the scheme had not been entered into or carried out. When determining what would have happened, or might reasonably be expected to have happened, but for the scheme, it is necessary to identify what has variously been referred to as the “counterfactual” or the “alternative postulate”.

This article examines the recent decision of the Federal Court in the Macquarie Bank Limited case, in which the taxpayer successfully appealed against the Commissioner’s objection decision, and which has raised a curious counterfactual problem in the context of the consolidation provisions.

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


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.


Anti-avoidance Consolidation 2012

Share this page