What are general anti-avoidance rules (GAAR)?
GAAR (General Anti-Abuse Rule) is a set of principles-based rules within a country’s tax code that aims to eliminate unacceptable tax evasion practices. This is done by essentially giving that country’s tax authority the power to deny a particular tax benefit that would lead to tax avoidance or to increase the tax liability against the taxpayer.
There is no one-size-fits-all approach to GAAR, as the intricacies of the rules vary by country. In general, GAAR focuses on any aspect of a transaction that is contrived and undermines the tax law in an effort to obtain a tax benefit.
The GAAR clause applies to various taxes including, but not limited to:
- Income tax
- Corporation tax
- Inheritance tax
- Diverted profits tax
- Annual Tax on Enveloped Dwellings
Depending on the country, the application of the GAAR clause may have a different scale.
Our services
As an experienced team of tax advisors, tax experts and lawyers who deal with GAAR, we can help you in the following matters:
- Representation in proceedings before public administration bodies and administrative courts.
- Representation in the matter of issuing an opinion by the Board.
- An independent audit of the tax function.
- General GAAR advice.