Part IVA

Guardian AIT: 100A or ATO’s Part IVA angel in disguise?

Guardian AIT: 100A or ATO’s Part IVA angel in disguise?

This time last year, we published an article querying whether the Federal Court decision in Guardian AIT Pty Ltd ATF Australian Investment Trust v FCT [2021] FCA 1619 (First Instance Decision) would ignite an administrative and judicial quest for clarity on the interpretation of section 100A of the Income Tax Assessment Act 1936 (ITAA 1936).

Can Part IVA apply to trustee discretions? Yes, according to the Federal Court

Can Part IVA apply to trustee discretions? Yes, according to the Federal Court

The recent Federal Court decision of Minerva Financial Group Pty Ltd v Commissioner of Taxation [2022] FCA 1092 (Minerva) signifies that the Federal Commissioner of Taxation (Commissioner) can successfully scrutinise a trustee’s discretion under the general anti-avoidance provisions (Part IVA).