The case that caused these amendments included the creation of the paid-up capital, which is an account that can effectively be taken out of a company, tax-free, for the shareholder. There have been other cases where taxpayers try to create paid-up capital. Also there have been cases where taxpayers try to create a cost base in shares, which could allow shares to be sold without triggering capital gains, or where they try to create losses to shelter income. Those are the types of cases where this rule could be relevant.
More broadly, the department is in the process of doing a consultation on the general anti-avoidance rule, looking at how to strengthen it and improve its application, in general, to a broad range of cases.