TAXATION – schemes to reduce tax pursuant to Part IVA of the Income Tax Assessment Act 1936 (Cth) – where vendor incurs a substantial capital loss on related party share sale but there is no effective alteration of control – whether primary judge erred in considering s 177D matters by considering the subjective intent of the scheme participants – whether primary judge failed to consider all objective purposes in the s 177D(2) analysis – held no error established. DIVIDEND STRIPPING – s 177E – whether primary judge erred in concluding that two debt forgiveness schemes entered into between related companies were schemes having substantially the effect of a scheme by way of or in the nature of dividend stripping – whether the schemes had the requisite tax avoidance purpose – whether the schemes had the requisite substantive effect – appeal allowed in part. TAXATION OF FINANCIAL ARRANGEMENTS (TOFA) – meaning of the expression “contingent only on the economic performance of the business” in s 230-460(13) Income Tax Assessment Act 1997 (Cth) – application to expired rights to receive certain milestone payments in a share sale agreement – no error demonstrated.
Related tax law cases
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Merchant v Commissioner of Taxation [2025] FCAFC 56
TAXATION – schemes to reduce tax pursuant to Part IVA of the Income Tax Assessment Act 1936 (Cth) – where vendor incurs a substantial capital loss on related party share sale but there is no effective alteration of control – whether primary judge erred in considering s 177D matters by considering the subjective intent of…
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Edser v QSuper Board [2025]FCA 212 (18 March 2025)
PRACTICE AND PROCEDURE – interlocutory application for security for costs against appellant – no appearance by appellant – potential request for adjournment refused – ex parte hearing of application – principles for granting order for security for costs – where grounds of appeal identify no error in reasoning of primary Judge – where limited evidence…
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Elzain v ATO [2024] FCA 873
PRACTICE AND PROCEDURE – application for leave to appeal – suppression and non-publication orders – where the Deputy Commissioner of Taxation applied on an ex parte basis for freezing orders – where the Deputy Commissioner of Taxation relied on a large volume of material in support of the application – where the applicants applied for…
Original article available at: https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2025/2025fcafc0056
For more information, see the original judgement.
