Recommendations on Guidelines on Implementing GAAR Provisions Released

The Indian authorities proposed the introduction of a General Anti-Avoidance Rule (GAAR) in the Budget for 2012/13 to be effective from 1 April 2013. In furtherance of this, the Central Board of Direct Taxes (CBDT) formed a Committee to provide recommendations on the formulation of guidelines with regard to the application of the GAAR and the recommendations were released on 28 June 2012. The Committee's recommendations are summarized below and can be divided into: