Mark Robertson KC and Bradley Jones SC, instructed by Holding Redlich, successfully appeared for the applicant before the Federal Court of Australia in the recently decided Ierna v Commissioner of Taxation [2024] FCA 592.

The appeal concerned objection decisions made by the Commissioner of Taxation under the Income Tax Assessment Act 1936 (Cth) in relation to a restructure effected by the applicants, which the Commissioner alleged resulted in payments which should have been treated either as dividends pursuant to s 45B of ITAA 1936 or as a tax benefit arising under a ‘scheme’ pursuant to Part IVA of ITAA 1936.

Justice Logan found that neither s 45B of ITAA 1936 or Part IVA of ITAA 1936 had any application as the dominant purpose of the restructure was to repay inter-group Division 7A loans, not to change the financial position of the creditor companies. His Honour allowed the appeal and ordered that the Commissioner’s objection decision be set aside.

A copy of the decision may be found here.