Income Tax Act 2007 section 696

Opposed notifications: statutory declarations

Section 696 explains how a person who has received a preliminary notification under the transactions in securities rules can formally challenge it by making a statutory declaration that the anti-avoidance provision does not apply to them.

• A person served with a preliminary notification may oppose it by making a statutory declaration that section 684 (the counteraction provision for transactions in securities) does not apply to them.
• The statutory declaration must be made and sent to the relevant officer of Revenue and Customs within a specified time limit after the preliminary notification is served.
• If the person makes and sends the statutory declaration, and the officer considers there is no reason to take further action, the matter proceeds no further.
• This mechanism provides a formal route for taxpayers to contest the application of the transactions in securities anti-avoidance rules before any counteraction notice is issued.