Navigating the whole new world of Part IVA disputes involving trusts
Published Date: 24 Apr 2025
The application of the tax law to trusts is notoriously complex. In recent years, the Commissioner has frequently invoked general and specific anti-avoidance regimes to challenge trust arrangements and distributions that were previously considered low risk. This article analyses Pt IVA, s 100A and s 45B of the Income Tax Assessment Act 1936 (Cth), through the lens of key recent decisions in Minerva, Guardian, Ierna, Collie, Grant, and Merchant. These decisions reinforce the paramount importance of robust evidence to discharge the taxpayer’s burden of proof around tax benefit and dominant purpose, particularly when taxpayers are pursuing legitimate commercial objectives. As the Commissioner continues to explore the boundaries of anti-avoidance rules, advisers and taxpayers will need a thorough understanding of the evolving jurisprudence to effectively navigate the intricate landscape of trust taxation.
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- Published By: Mark Macrae CTA
- Published On:24 Apr 2025
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