General Anti Avoidance Rule targets arrangements and steps whose main purpose is obtaining a tax benefit through non commercial means. The General Anti-Avoidance Rule permits an arrangement or any step to be declared an impermissible avoidance arrangement if its main purpose is to obtain a tax benefit, including where it creates non arm's length rights or obligations, results in misuse or abuse of the Act, lacks commercial substance (including round trip financing or use of an accommodating party), or is carried out by means not ordinarily employed for bona fide purposes; consequences include disregarding, recharacterising or reallocating steps, parties, amounts, residence or situs, and treating connected persons or accommodating parties as one.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
General Anti Avoidance Rule targets arrangements and steps whose main purpose is obtaining a tax benefit through non commercial means.
The General Anti-Avoidance Rule permits an arrangement or any step to be declared an impermissible avoidance arrangement if its main purpose is to obtain a tax benefit, including where it creates non arm's length rights or obligations, results in misuse or abuse of the Act, lacks commercial substance (including round trip financing or use of an accommodating party), or is carried out by means not ordinarily employed for bona fide purposes; consequences include disregarding, recharacterising or reallocating steps, parties, amounts, residence or situs, and treating connected persons or accommodating parties as one.
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