Matters relevant to whether scheme is tax avoidance scheme
40D Matters relevant to whether scheme is tax avoidance scheme
The following matters are taken into account in determining whether a scheme is a tax avoidance scheme, and whether it is of an artificial, blatant or contrived nature:
the way in which the scheme was entered into, made or carried out;
the form and substance of the scheme, including—
the legal rights and obligations involved in the scheme;
and
the economic and commercial substance of the scheme;
when the scheme was entered into or made and the length of the period during which the scheme was carried out;
the purpose of the relevant taxation law or any provision of the relevant taxation law (whether or not that purpose is expressly stated);
the effect that the relevant taxation law would have in relation to the scheme apart from this Part;
any change in any person's financial position, or other circumstances, that has resulted, will result, or may reasonably be expected to result, from the scheme;
the nature of any connection, whether of a business, family or other nature, between the person whose liability for duty is avoided or reduced as a result of the scheme and any other person whose financial position or other circumstances have changed, will change, or may reasonably be expected to change, as a result of the scheme;
the circumstances surrounding the scheme.
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