From www.corrs.com.au: The Full Federal Court ruled that a capital loss from the sale of ASX-listed shares to a related entity was subject to Part IVA anti-avoidance provisions, noting that transactions lacking genuine ownership transfer can be viewed as artificial.

The case also involved dividend stripping concerns, where the forgiveness of loans by related parties was seen as an attempt to avoid tax, but only one of the debt forgiveness arrangements was found to have substantial tax avoidance effects.

Justice Logan’s dissent highlighted differing views on the relevance of broader commercial contexts and the significance of the dominant purpose behind the transactions.