General anti-avoidance rule: impermissible arrangements may be recharacterised and tax benefits denied to neutralise avoidance. Clause 181 empowers corrective tax measures when an arrangement is declared an impermissible avoidance arrangement, permitting denial of tax or treaty benefits and measures such as disregarding, combining or recharacterising steps or whole arrangements; treating arrangements as not entered into; treating accommodating parties or connected persons as one; reallocating accruals, receipts, expenditures, deductions, reliefs or rebates among parties; looking through corporate structures; and recharacterising equity and debt or capital and revenue attributes.
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: impermissible arrangements may be recharacterised and tax benefits denied to neutralise avoidance.
Clause 181 empowers corrective tax measures when an arrangement is declared an impermissible avoidance arrangement, permitting denial of tax or treaty benefits and measures such as disregarding, combining or recharacterising steps or whole arrangements; treating arrangements as not entered into; treating accommodating parties or connected persons as one; reallocating accruals, receipts, expenditures, deductions, reliefs or rebates among parties; looking through corporate structures; and recharacterising equity and debt or capital and revenue attributes.
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