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12.1. GAAR and General Anti-Avoidance Measures

Domestic laws do not include general anti avoidance rules, although the tax authorities have the ability to disregard acts which it deems not to be in the interest of the enterprise (abnormal management theory). Specific provisions against tax havens have been introduced by the Finance Act 2016. Under the rules, payments of interest, royalties and services of any type to persons established in a low-tax or non-cooperative jurisdiction (see sec. 6.5. for a definition) are not deductible unless the payer proves that the payment is in remuneration of a genuine service and is not excessive. Also, the newly amended transfer pricing rules stipulate that transactions with persons established in low-tax or non-cooperative jurisdictions are deemed to be conducted with related persons, and consequently fall under the transfer pricing rules, regardless of the actual relationship between the parties.

Reporting of Change in Ownership

With effect from 1 January 2019, a new reporting requirement is introduced for domestic companies that are owned directly or indirectly by non-resident persons. The new requirement provides that any alienation of shares modifying the ownership structure of the local entity is required to be reported to the Malian tax authority within 30 days of the transfer.

Domestic laws do not override tax treaties.