General anti-avoidance rules, such as those contained within Part IVA of the Income Tax Assessment Act 1936 are an integral part to any tax system. The integrity measures contained within Part IVA are designed to protect the Australian tax system from blatant, artificial, or contrived arrangements. However, the recent decisions in Guardian and Minervia have given many practitioners and taxpayers reason for concern about the types of “schemes” Part IVA will apply to.
This session discusses the following:
- They key outcomes in Guardian and Minervia cases with respect of Part IVA
- How the “alternative postulate” can have adverse implications for taxpayers
- Practical steps practitioners can take to help clients manage Part IVA risks; and
- Promoter penalty reforms and what practitioners need to be aware of.