KPMG welcomes the opportunity to make a submission on the draft interpretation statement (“the IS”) on sections BG 1 and GA 1 of the Income Tax Act 2007 – the tax avoidance provisions.
Our submission is focused on the main areas where we consider the IS can be improved. These include providing greater certainty – via a rational and consistent approach to the application of section BG 1 – and the desirability of commercial alternatives (counterfactuals) to test whether the tax advantage achieved is contemplated.