Anti-avoidance 2013

Part IVA: Murky waters

Source: Taxation In Australia Journal Article

Published Date: 1 Sep 2013


The much-anticipated amendments to the general anti-avoidance provisions of Pt IVA of the Income Tax Assessment Act 1936 (Cth) were finally enacted into law by the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013 (Cth), which received the royal assent on 29 June 2013.
This article considers the new-look Pt IVA, and identifies a number of difficulties with the underlying assumptions on which the changes appear to have been based. The article examines in turn the tax benefit element, the concept of “deletion” or “annihilation” of schemes to which the legislation applies, the notion of “reconstruction” of arrangements, and the purpose test which is seen as the central element that distinguishes between tax avoidance and legitimate tax planning.

The article concludes with a discussion of the likely approach by the courts to interpretation of the new laws.

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 2013

Share this page