Asset protection and tax avoidance
Published Date: 17 Jun 2024
Australia’s federal general anti-avoidance rules (GAAR) in Pt IVA of the Income Tax Assessment Act 1936 (Cth) counter arrangements that, objectively viewed, are carried out with the dominant purpose of securing a tax advantage. Often overlapping with tax minimisation, asset protection is an inherently cross-disciplinary field concerned with managing insolvency risk in both commercial and family contexts. It is frequently intertwined with tax minimisation because, when an adviser gives advice regarding the preservation or transmission of individuals, families and/or corporations’ property, it will often have tax consequences. This article considers whether, and/or when, asset protection-related advice might amount to tax avoidance by reference to Pt IVA. It introduces readers to asset protection as a distinct body of law and practice. Next it analyses the concepts of tax and legal advice and the GAAR, before, finally, looking at asset protection advice and tax avoidance in relation to three separate scenarios.
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- Published By: Mathew Leighton-Daly
- Published On:17 Jun 2024
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