Treaty Shopping & Part IVA
Posted on: 07/12/2010
On Wednesday, 1 December 2010, the Australian Taxation Office released Taxation Determination TD 2010/20 which states that Pt IVA of the ITAA 1936 can apply to arrangements designed to alter the intended effect of Australia's International Tax Agreements network. According to the ATO, where an arrangement is put in place merely to attract the operation of a particular tax treaty in the context of a broader structuring arrangement, this may be a scheme which otherwise satisfies the terms of Pt IVA, and any tax benefit obtained in relation to such a scheme may be cancelled. The Determination was originally released as Draft TD 2009/D17 (see 2009 LTN 244 [14]).
For a copy of TD 2010/20, please see the attached document.