Clarifying the operation of the income tax general anti-avoidance rule (Part IVA)
The government has amended the general anti-avoidance provision Part IVA of the Income Tax Assessment Act.
Part IVA is intended to counter schemes that comply with the technical requirements of tax law but have a dominant purpose of avoiding tax. If specific conditions are met, we may make a determination to cancel tax benefits obtained in connection with a scheme.
The amendments apply retrospectively to schemes entered into or carried out on or after 16 November 2012.
For more information, refer to the following media releases by the Assistant Treasurer:
Legislation and supporting material
The legislation received royal assent on 29 June 2013:
If you entered into a scheme or arrangement in accordance with the law prior to 29 June 2013, and Part IVA applies as a consequence of the enactment of the amendments, interest and penalties will be remitted unless the case especially warrants different treatment.
If you have concerns that the amendments may have potential application to an arrangement you entered into prior to 29 June 2013, you should contact us.
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