Part IVA avoidance rules do not apply in Personal Services business where the husband does the majority of work, but the business is run as a Husband-Wife partnership. The court deemed that the wife running as a partner exposes her to personal liability, therefore she takes on an element of risk in accepting half the income.
ATO is pursuing other test cases. One involves discretionary trust distributions to the tax threshold limits of each beneficiary. Since when did tax minimization equates to tax avoidance?