Catchwords:

TAXATION – schemes to reduce tax pursuant to Part IVA of the Income Tax Assessment Act 1936 (Cth) – where vendor incurs a substantial capital loss on related party share sale but there is no effective alteration of control – whether primary judge erred in considering s 177D matters by considering the subjective intent of the scheme participants – whether primary judge failed to consider all objective purposes in the s 177D(2) analysis – held no error established.

DIVIDEND STRIPPING – s 177E – whether primary judge erred in concluding that two debt forgiveness schemes entered into between related companies were schemes having substantially the effect of a scheme by way of or in the nature of dividend stripping – whether the schemes had the requisite tax avoidance purpose – whether the schemes had the requisite substantive effect – appeal allowed in part.

TAXATION OF FINANCIAL ARRANGEMENTS (TOFA) – meaning of the expression “contingent only on the economic performance of the business” in s 230-460(13) Income Tax Assessment Act 1997 (Cth) – application to expired rights to receive certain milestone payments in a share sale agreement – no error demonstrated.