Too clever by half

Posted on

Too clever by half - Mark Westfield - News - Business Spectator .

One for the aficionados: this is about using Australia's General Anti-Avoidance Principle to tackle a transaction routed through the Netherlands, Luxembourg and the Cayman Islands.

As the article says:

The test applied by the ATO was whether this routing of money through the world’s tax havens was important to the commercial basis of the transaction, or whether it was merely to avoid tax.

The Australian Tax Office (ATO) clearly believes it to be avoidance. Good for them. And good for Australia that it has a General Anti-Avoidance Principle to tackle such abuse.