INCOME TAX - where the applicants appeal against objection decisions made by the respondent (Commissioner) in relation to assessments for the 2016 income year made under the Income Tax Assessment Act 1936 (Cth) (ITAA 1936) - where the applicants comprise various entities from the City Beach group and its controllers, Messrs Ierna and Hicks - where the City Beach business was conducted through a trust (CBT), units in which were pre-capital gains tax assets - where there were inter-group Division 7A of the ITAA 1936 loans (Division 7A loans) - where the applicants effected a restructure in 2016 that allegedly resulted in either certain payments that ought to have been treated as dividends pursuant to s 45B of ITAA 1936 or, alternatively, a tax benefit arising under a "scheme" pursuant to Pt IVA of ITAA 1936 - where the applicants transferred the units of the CBT to a new entity which then entered into deeds of assignment that effectively extinguished the Division 7A loans - where the applicants contended that the restructure was effected to eliminate the adverse commercial impacts of the Division 7A loans and was the only commercially viable solution in the circumstances - where the Commissioner contended that the applicants had in fact realised $52 million in value of the CBT units and that their income should be assessed as such - whether there was a genuine commercial purpose for the transaction - whether the applicants had in fact realised $52 million of the CBT units - appeals allowed - objection decision set aside and in lieu objections allowed in full
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