Poland Issues Clarification on Proposed GAAR

On 27 November 2014, the Polish Ministry of Finance published a press release clarifying the country's proposed general anti-avoidance rule (GAAR). The GAAR was proposed in draft legislation in July 2014.

The proposed GAAR would apply if a taxpayer uses an artificial legal structure with the primary purpose of obtaining substantial tax benefits. In such case, the tax authorities would be empowered to disregard the structure and take into account actual commercial activities and typical legal…