Why are the tax avoidance provisions (Part IVA) relevant?
Part IVA of the Act2 gives the Commissioner discretion to cancel all or part of tax benefits if: • the taxpayer has obtained a ‘tax benefit’3, for example, a capital loss or an allowable deduction (or would have obtained the benefit unless the Commissioner cancelled it); • the tax benefit was, or would have been, obtained in connection with a ‘scheme’;4 and • the scheme was entered into for the sole or dominant purpose of obtaining a tax benefit — considering the eight factors listed in section 177D of the Act. (You can read the factors at the end of this article) .
