(1) Despite any provision in a tax law, where the Commissioner-General is of the opinion that a person might otherwise secure a tax benefit under a tax avoidance arrangement, the Commissioner-General may adjust the tax liability of that person in a way that the Commissioner-General considers appropriate to counteract the tax benefit.

(2) The Commissioner-General may, pursuant to subsection (1) serve the person with a notice specifying

(a) the tax benefit;

(b) the arrangement; and

(c) the adjustment made by the Commissioner-General.

(3) A notice under subsection (2) may be incorporated in a notice of assessment.

(4) For the purpose of this section “tax avoidance arrangement” means, subject to subsection (5)

(a) an arrangement that has as a main purpose the provision of a tax benefit for a person; or

(b) an arrangement where the main benefit that might be expected to accrue from the arrangement is a tax benefit for a person; and

“tax benefit”, in relation to a person, means

(a) avoiding, reducing or postponing a tax liability of the person;

(b) increasing a claim of the person for a refund of tax; or

(c) preventing or obstructing collection of tax from the person.

(5) An arrangement is a “tax avoidance arrangement” only if it involves a misuse or abuse of a tax law provision having regard to the purpose of the provision and the wider purposes of the law in which the provision is situated.