From www.austaxpolicy.com: The second part of the discussion on the PepsiCo case examines the Income Tax Assessment Act 1936’s General Anti-Avoidance Rule (Part IVA) and the effectiveness of its 2013 amendments aimed at addressing shortcomings identified in previous court rulings.

Part IVA was created to counter tax avoidance tactics that exploited legal structures to minimize tax liabilities, emphasizing a more objective assessment of tax benefits.

The 2013 amendments aimed to clarify the interrelation of “purpose” and “tax benefit” while enforcing that alternative postulates must reflect realistic scenarios devoid of tax considerations, yet their effectiveness in altering judicial approaches remains under scrutiny in light of the ongoing High Court case.