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Income Tax Assessment Act 1936

Question 1:

According to the general anti-avoidance rules that are provided in part IVA of the Income Tax Assessment Act 1936, the rules provided by Part IVA will be applicable to an arrangement or scheme entered into the by the taxpayer if both of the below conditions are satisfied:

• The taxpayer obtained a tax benefit by entering into the said arrangement or scheme and he/she would not have been able to claim the tax benefit had they not entered into the scheme (ATO, n.d.). In order to determine that whether a tax benefit would have been otherwise available or not the complete financial consequences or results of the scheme will have to be considered and it will also have to be determined if it was possible to receive those benefits in a more convenient and simple way.

• A consideration of the 8 matters that are specified in part IVA would lead to the conclusion that the taxpayer or a....