A decision to invest a large sum of capital at much lower interest rates, than can be obtained in Australia, in an overseas bank through a complicated series of transactions involving multiple countries, due to a provision that did operate at that time under Australia's domestic tax rules to treat such foreign income as tax exempt, is most likely to be viewed as tax avoidance under what set of rules?

Question

Quizplus · Accepted Answer

The general anti-avoidance rules found in Part IVA are designed to address arrangements that, while legally structured, are primarily aimed at obtaining a tax benefit in a way that is not intended by the law. Investing overseas to exploit a tax exemption provision fits this scenario.

A Decision to Invest a Large Sum of Capital at Much