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Part IVA and consolidated groups: Grazing on uncertainty

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Published on 01 Sep 15 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

The decision of the Full Court of the Federal Court in Channel Pastoral Holdings Pty Ltd v FCT was the second of two decisions which have considered the interaction of Pt IVA (the general anti-avoidance provision) of the Income Tax Assessment Act 1936 and the tax consolidation regime (the first was FCT v Macquarie Bank Ltd). In Channel Pastoral, the court held that Pt IVA could apply to a scheme or an arrangement involving the formation of a tax consolidated group, and that the correct entity to which to issue a determination and corresponding assessment (or amended assessment) is the group member which would have derived the tax benefit had the consolidated group not been formed.

This article examines the case in detail, outlines a number of implications, and argues that there is still confusion as to who should be the subject of a determination and an assessment in these situations.

Author profiles

Clinton Harding CTA
Clint is a partner at Arnold Bloch Leibler and leads the Sydney taxation practice. Clint advises across most taxes, with particular expertise in corporate and international tax, the taxation of financial instruments and transactions, and the management of tax audits and disputes with the ATO. Clint is the author of numerous tax articles, a regular presenter and former Chair of The Tax Institute’s Large Business and International Committee .  In 2018, Clint won The Tax Institute’s Corporate Tax Adviser of the Year Award and was the recipient of the Tax Institute’s Community Champion Award in 2023. He is the former National Chair of the Law Council of Australia’s Taxation Committee and was a member of the National Tax Liaison Group for 6 years. - Current at 16 January 2026
Click here to expand/collapse more articles by Clint Harding.
Peter Scott FTI
Peter Scott, FTI, is a Senior Associate in the tax team at King & Wood Mallesons. Peter’s practice covers transactional matters with a focus on funds, private clients, M&A, banking and finance, general corporate and international tax as well as controversy matters. Peter holds a BBus and LLB (Hons I) from the University of Tasmania and an LLM from the University of Sydney and has lectured at the University of Tasmania. - Current at 17 June 2024

 

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