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13.1. GAAR and General Anti-Avoidance Measures

Tax authorities are empowered to disregard or re-characterize arrangements that are entered into or carried out as part of a tax avoidance scheme or which do not have substantial economic effect or where the form does not reflect its substance. For this purpose, 'tax avoidance scheme' means any arrangement, one of the main purposes of which is the avoidance or reduction of liability to tax.