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The Expanding Scope of Tax Anti-Avoidance Rules – Insights and Implications for SMEs

Published on 21 Oct 2010 | Took place at Leonda by the Yarra, Hawthorn , VIC

With the ATO showing a renewed focus on Part IVA, advisers must be mindful of anti-avoidance risks at every step. Taxpayers often rely upon the supposed “commerciality” of an arrangement in concluding that it should not be subject to Part IVA. Yet in the recent Citigroup case, an arm’s length transaction of an apparently ordinary commercial nature, was struck down by the Commissioner.

Across the Tasman, the Courts in New Zealand have been grappling with anti-avoidance cases involving questions of “commercial and economic reality”, and taxpayers’ freedom of choice in arranging their affairs. The underlying theme is again one of the increasing scope of anti-avoidance rules, and reduced certainty for taxpayers and advisers.

This event drew upon recent anti-avoidance cases to provide a snapshot of the changing landscape of Part IVA.

This event was part of the breakfast club and also ran in Geelong.

Individual sessions

The expanding scope of tax anti-avoidance rules: Insights and implications for SMEs

Author(s):  Joanne DUNNE This presentation covers:

  • recent Part IVA cases
    • Citigroup (loss for taxpayer) - appealed by taxpayer and FCT
    • Trail Bros. Steel and Plastics (case remitted; loss for taxpayer) -
    • awaiting primary judgment
    • News Australia Holdings (win for taxpayer)
    • Futuris Corporation (win for taxpayer) - appealed by FCT
    • RCI Pty Ltd (loss for taxpayer) - appealed by taxpayer
    • summary of position following recent Part IVA cases
  • developments in New Zealand
    • a changed environment - some recent cases
      • Ben Nevis (loss for taxpayer)
      • Westpac and BNZ (loss for taxpayers)
      • Penny & Hooper; Krukziener (loss for taxpayers)
    • effect on business in New Zealand
  • comparison & conclusions - issues for SMEs.
Materials from this session: