Clause 179 - Impermissible avoidance arrangement.

Impermissible avoidance arrangement defined as transactions aimed at securing tax benefits, triggering GAAR presumptions and reverse onus.

An impermissible avoidance arrangement is one whose main purpose is to obtain a tax benefit and which (a) creates non-arm's-length rights or obligations; (b) results in misuse or abuse of the Act; (c) lacks commercial substance or is deemed to lack it under section 180; or (d) is carried out by means not ordinarily used for bona fide purposes. A rebuttable presumption requires the assessee to disprove that a step or part of an arrangement with a main purpose of obtaining a tax benefit implies the whole arrangement was so entered into.