Partner Clint Harding features in The Tax Institute’s Tax Vine newsletter and considers the role of Part IVA in our tax system and the proposed changes to Part IVA in the 2023-24 Federal Budget.
Part IVA of the Income Tax Assessment Act 1936 (Cth) has, for many years, has been a framework designed to protect the integrity of the Australian tax system, and looks to prevent blatant, artificial, or contrived attempts to obtain tax benefits. To read more about Part IVA and the General Anti-Avoidance Regime, view our dedicated Tax Disputes Portal here.
Recent changes in the Australian tax landscape provide an opportunity to consider the ongoing relevance of Part IVA, particularly in the large business and international segment of the market. The Budget announced on 9 May 2023 contained a series of avoidance measures including further amendments to Part IVA itself.
Given the proposed amendments, as well as the influx of specific integrity measures and the impending Pillar One and Pillar Two changes, the question is posed: has Part IVA reached the end of its effective life as far as the public groups and international segment of taxpayers is concerned?
The answer is that although the changes to the integrity landscape are significant and ongoing, the recent cases of Minvera and Guardian together with the ongoing work of the ATO’s GAAR Panel demonstrate that there is still plenty of work left for Part IVA to do.
If you would like to view the full Tax Vine newsletter, please click here.