Division 165 in perspective
Source: The Tax Specialist Journal Article
Published Date: 1 Apr 2016
Competently structured tax legislation tends to minimise tax avoidance by putting in place anti-avoidance provisions to stop the abuse of the intent of each provision in the tax legislation, even when a scheme is devised to enable avoidance. Even though the policy intent of the legislation may be reflected in the wording of the legislation, it can be open to different interpretations or manipulated to suit the taxpayer's preferred outcome. It is impossible for the legislature to foresee all possible tax avoidance arrangements and to enact a tax provision which has no loopholes for an indefinite period.
This article looks at the operation of Div 165 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth), which is aimed at deterring artificial schemes that produce GST benefits. The article also considers Pt IVA of the Income Tax Assessment Act 1936 (Cth), the difference between tax avoidance and tax evasion, and when the Commissioner is empowered to make a declaration to negate a GST benefit
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Details
- Published By: Cyrus Thistleton
- Published On:1 Apr 2016
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