Income Tax Act 2007 section 154A

Anti-avoidance

Section 154A prevents loss relief on miscellaneous transactions from being claimed where the loss or income arises from tax avoidance arrangements.

• Where a loss from a miscellaneous transaction arises directly or indirectly from tax avoidance arrangements, the person cannot claim loss relief for that loss
• Where chargeable income arises directly or indirectly from tax avoidance arrangements, loss relief cannot be set against that income
• Tax avoidance arrangements are defined as any arrangements the person is party to where a main purpose is to reduce tax liability through miscellaneous transaction loss relief
• Arrangements is broadly defined to include any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable