Income Tax Act 2007 section 809EZF

Disguised investment management fees: anti-avoidance

Section 809EZF provides an anti-avoidance rule that prevents arrangements designed to circumvent the income tax charge on disguised investment management fees under section 809EZA.

• Any arrangements whose main purpose (or one of whose main purposes) is to avoid the disguised investment management fee charge must be disregarded
• This applies whether the arrangements are intended to benefit a single individual or a group of individuals
• The test looks at the purpose of the arrangements, not merely their effect
• The rule ensures the charge under section 809EZA cannot be sidestepped through contrived structures