The ATO's anti-avoidance powers in Part IVA always cast a shadow over any tax planning done for your clients or your business. In recent years there has been more and more activity by the ATO that relies on these anti-avoidance powers.
When the Commissioner can and can't use these powers to strike out a tax benefit is something any tax adviser needs to understand. Last month, the High Court handed down its hotly anticipated judgement in the Hart case. In a shock to many, the High Court decided to strike down a split loan that was cleared by the Federal Court. Why the change? And what does it mean for tax planning?