Edward Consett

Jul 28, 2024 | mondaq.com | Joanna M. Black |James Head |Edward Consett

On 6 June 2024, the Federal Court of Australia (FCA) found in favour of the taxpayer in Ierna v Commissioner of Taxation [2024] FCA 592. The FCA determined that: The specific anti-avoidance rule in section 45B of the Income Tax Assessment Act 1936 (ITAA 1936) did not deem a capital return paid following an internal restructure to be an unfranked dividend; and The scheme did not attract the application of the general anti-avoidance rules in Part IVA of the ITAA 1936.

Apr 16, 2024 | mondaq.com | Neil Pereira |Chris Neil |Tim Edwards |Edward Consett

In Minerva Financial Group Pty Ltd v Commissioner of Taxation [2024] FCAFC 281, the Full Federal Court reversed the Federal Court's decision in finding that Australia's general anti-avoidance rules (Part IVA) did not apply to income distributions made by a trust within a stapled group structure. This article analyses the Full Federal Court's reasons for their judgment, highlighting the emphasis placed on the commercial substance over mere tax outcomes obtained.