STATEMENT
Where officers seek to apply the general anti-avoidance provisions they must, before proceeding, refer the matter to the Tax Counsel Network (TCN) using their business line's escalation process.
A member of the TCN will provide interim advice, and arrange for that advice and relevant papers to be provided to the Assistant Commissioner, OCTC (Litigation) who will, in consultation with the Chief Tax Counsel and Deputy Chief Tax Counsels (using the Part IVA Panel as appropriate), monitor and confirm the application of the general anti-avoidance provisions.
EXPLANATION
The proper application and development of general anti-avoidance provisions is an issue of importance to the ATO.
The Part IVA Panel (which includes community representatives) has been established to advise the ATO on general anti-avoidance issues. The panel looks at cases usually just before the application of the general anti-avoidance provisions is formalised (e.g. a Part IVA determination is made), so that taxpayers will know their case has been fully considered before that step was taken. However, important and/or sensitive cases may come to the panel at an earlier stage.
The panel considers the use and development of the general anti-avoidance provisions as a whole, rather than being necessarily "driven" by individual cases.