{
  "title": "Introducing a General Anti-Avoidance Rule (GAAR): Ensuring That a GAAR Achieves Its Purpose",
  "publication": "Tax Law Technical Note, January 31, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/tax-law-technical-note/issues/2016/12/31/introducing-a-general-anti-avoidance-rule-gaar-ensuring-that-a-gaar-achieves-its-purpose-43662",
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  "summary": "Tax avoidance continues to attract attention globally with strong support for tax law reform at all levels. This Tax Law IMF Technical Note focuses on some of the key design and drafting considerations of one specific legal instrument (being, a statutory general anti-avoidance rule (GAAR)) which is",
  "sections": [
    {
      "heading": "Overview and purpose",
      "content": "- Tax avoidance remains a prominent global issue, prompting tax law reform at multiple levels.\n- This Tax Law IMF Technical Note focuses on key design and drafting considerations for a statutory general anti-avoidance rule (GAAR).\n- A GAAR is typically designed to strike down otherwise lawful practices that are carried out in a manner which undermines the intention of the tax law (for example, where a taxpayer has misused or abused that law)."
    },
    {
      "heading": "Core findings and analysis",
      "content": "- The objective of combating unacceptable tax avoidance complicates GAAR legal design because the phrase “tax avoidance” means different things to different people.\n- Whatever the form of a GAAR, it should:\n  - Give effect to a policy that seeks to strike down blatant, artificial or contrived arrangements which are tax driven.\n  - Be designed and applied so as not to inhibit or impede ordinary commercial transactions.\n- Drawing a line between arrangements that should be caught by the GAAR and those that should not is a matter of degree and can be delicate.\n- The Note discusses and explores how that line can be drawn and the implications of different drafting and design choices."
    },
    {
      "heading": "Policy considerations and recommendations",
      "content": "- Design GAARs to target blatant, artificial, or contrived tax-driven arrangements.\n- Ensure GAAR drafting and application preserve and do not impede ordinary commercial transactions.\n- Recognize and address the inherent ambiguity in the term “tax avoidance” through careful drafting and interpretive guidance.\n- Balance the anti-avoidance objective against legal certainty for taxpayers and commercial actors."
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Anti-avoidance rules, Double taxation, Exports, International trade, Legal support in revenue administration, Revenue administration, Tax avoidance, Tax law, Tax policy, Taxes\n- Keywords: Anti-avoidance rules, company B, Double taxation, economic gain, export exemption, Exports, GAAR determination, general anti-avoidance rule, Global, introduce a General Anti-Avoidance Rule, purpose test, sample GAAR, tax authority, Tax avoidance, tax benefit, Tax law, taxpayer, TLT\n\nIntroducing a General Anti-Avoidance Rule (GAAR): Ensuring That a GAAR Achieves Its Purpose, Christophe J Waerzeggers and Cory Hillier, Tax Law Technical Note 2016, 001 (2016).\n\n---\n\n Content in this bundle\n\n- tltn1601\n  - tltn1601 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - tltn1601 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/tax-law-technical-note/issues/2016/12/31/introducing-a-general-anti-avoidance-rule-gaar-ensuring-that-a-gaar-achieves-its-purpose-43662"
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    "Authors: Christophe J Waerzeggers, Cory Hillier",
    "Published: January 31, 2016",
    "Series: Tax Law Technical Note",
    "DOI: https://doi.org/10.5089/9781513515823.008",
    "Tax avoidance remains a prominent global issue, prompting tax law reform at multiple levels.",
    "This Tax Law IMF Technical Note focuses on key design and drafting considerations for a statutory general anti-avoidance rule (GAAR).",
    "A GAAR is typically designed to strike down otherwise lawful practices that are carried out in a manner which undermines the intention of the tax law (for example, where a taxpayer has misused or abused that law).",
    "The objective of combating unacceptable tax avoidance complicates GAAR legal design because the phrase “tax avoidance” means different things to different people.",
    "Whatever the form of a GAAR, it should:",
    "Drawing a line between arrangements that should be caught by the GAAR and those that should not is a matter of degree and can be delicate.",
    "The Note discusses and explores how that line can be drawn and the implications of different drafting and design choices.",
    "Design GAARs to target blatant, artificial, or contrived tax-driven arrangements.",
    "Ensure GAAR drafting and application preserve and do not impede ordinary commercial transactions.",
    "Recognize and address the inherent ambiguity in the term “tax avoidance” through careful drafting and interpretive guidance.",
    "Balance the anti-avoidance objective against legal certainty for taxpayers and commercial actors.",
    "Subject: Anti-avoidance rules, Double taxation, Exports, International trade, Legal support in revenue administration, Revenue administration, Tax avoidance, Tax law, Tax policy, Taxes",
    "Keywords: Anti-avoidance rules, company B, Double taxation, economic gain, export exemption, Exports, GAAR determination, general anti-avoidance rule, Global, introduce a General Anti-Avoidance Rule, purpose test, sample GAAR, tax authority, Tax avoidance, tax benefit, Tax law, taxpayer, TLT",
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