The "new" Part IVA paper

Published on 07 Nov 13 by NATIONAL DIVISION, THE TAX INSTITUTE

The form of the government’s “new” Part IVA is now known and it also appears that there will be a renewed focus by the ATO on the possible application of PartIVA to transactions undertaken by SMEs that have regard to the tax outcomes. It will be critical for advisers to understand the changes and factor them into the advice provided.

This paper examines:

• do the amendments reflect a change in the policy of Part IVA and specifically, does the dominant purpose test remain untouched?
• the operation and impact of the introduced “tax effects” element resulting in a new approach to assessing the “alternative postulates”
• does the alternative postulate need to be reasonable any longer?
• what is happening to the concept of “scheme”?
• the key issues to consider when providing tax structuring advice.

Author profile

Grant Wardell-Johnson

Grant Wardell-Johnson has been involved in international taxation for more than three decades, most recently as KPMG Global Tax Policy Leader based in the United Kingdom from 2021 to 2025. Prior to that he was the Australian Tax Policy Leader for a decade including Co-Chair of the National Tax Liaison Group from 2015 to 2021. He has been leading tax partner for many Australian corporates and M&A transactions. - Current at 24 March 2026

More by Grant WARDELL-JOHNSON

• Tax 2025 - People, the economy and the future of tax paper - 24-August-2017
• Base erosion and profit shifting for large superfunds paper - 21-August-2015
• The “new” Part IVA paper - 22-May-2014
• The “new” Part IVA - 01-February-2014
• Carbon tax paper - 15-February-2012
• Mergers and acquisitions involving consolidated groups paper - 16-February-2007
• Making the most of limited resources in tax due diligence - what to focus on in the purchase of a corporate entity paper - 26-October-2006
• Merger & Acquisition experiences in a tax consolidations environment - a purchaser's perspective seminar paper - 28-July-2004
• Commercial debt forgiveness - 22-June-1997

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