Icing, spreads and tax avoidance purposes
Source: Taxation In Australia Journal Article
Published Date: 1 Jun 2020
Various conceptions of purpose are fundamental to the tax laws in Australia. Consideration of purpose is either explicitly required, for example, when applying Pt IVA of the Income Tax Assessment Act 1936 (Cth), or implicit when making some other decision, such as determining whether an amount is incurred in gaining or producing assessable income. Statutory provisions may also raise difficult questions of gradation of purposes for a particular transaction " must the relevant purpose be dominant? Principal? Or merely not incidental? These questions, however, are not unique to Australia. This article explores a recent United Kingdom case regarding the application of a statutory anti-avoidance rule in a cross-border intra-group transaction and the tribunal's approach to assessing the purpose of the transaction in that case, and offers relevant observations on purpose in an Australian context in light of the expanding number of domestic anti-avoidance provisions.
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Details
- Published By: Tony Pane, Nicholas Dodds
- Published On:1 Jun 2020
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