Part IVA and Restructures


A number of tax measures have recently been introduced, or are in development, with the aim of removing the attractiveness of particular structures from a tax perspective, for example, the hybrid mismatch rules.

With the potential for harsh consequences, many taxpayers are now looking at altering their existing arrangements to limit their exposure.

At 2018’s National Resources Tax Conference, Andrew Broadfoot, QC (Victorian Bar) presents the session ‘Part IVA and Restructures’, looking at the impact of these measures, and how to assess and address the risks arising under Part IVA.

We spoke to him about some of the issues facing advisers in this post.

“There is very considerable uncertainty about how Part IVA may apply, or be sought to apply, in any given set of facts. This is particularly tricky where Part IVA potentially interacts with other anti-avoidance or integrity provisions.” he said.

“The interaction between Part IVA and restructures, where restructures are done to avoid adverse or in some instances draconian tax consequences that are enacted under new legislative measures, will be covered in my session”

“I will also touch on a number of cases decided under Part IVA that have concerned restructuring transactions, as well as referring to some examples that concern the anti-hybrid mismatch rules and the thin-capitalisation provisions.”

Andrew Broadfoot, QC, has been a barrister since 2002 and took silk in 2016. He has a broad-ranging advice and alternative dispute resolution practice. In the resource tax field, he has appeared in numerous petroleum rent resource tax trials (PRRT) and appeals as well as in cases concerning capital allowances and the R&D tax incentive.

“I hope to cover a number of practical examples that will help attendees in assessing risks arising under Part IVA when considering the transactions on which they are asked to advise. Rather than articulating the application of the law to particular facts I hope to help by suggesting methods of analysis that may be useful for a range of different situations.”

“My hope is that delegates leave with a refreshed understanding of the kind of circumstances in which Part IVA can apply, and the kind of circumstances in which it cannot apply, and enhanced insight into how to tell the difference.”

Of his experience, Andrew said “I am a Melbourne based barrister practising in taxation law, but also in general commercial law with a focus on resource and project-related disputes. I did articles in Melbourne in 1999 and was admitted to practice in 2000 and worked in Perth for 2 years before returning to Melbourne to join the Victorian Bar.”

“I have appeared in numerous resource related tax cases including PRRT disputes (Esso, Woodside and PTTEP) and capital allowance issues (Mitsui) as well as cases involving financing transactions (Messenger Press) and issues arising under Part IVA (Lawrence, AXA and Star City being some examples of them). Most recently I’ve done a six-day R&D incentive case in Brisbane concerning the development of new coal processing technology.”

The 2018 National Resources Tax Conference returns to Perth 24–26 October, at the Perth Convention and Exhibition Centre. Find out more about Andrew’s session and the rest of the program on our website.

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