General Anti-Avoidance Rule – UK Committee

Developments in Indian tax law over the last five years or so have brought to the fore the contentious issue of whether it is desirable to enact a General Anti-Avoidance Rule [“GAAR”] in India, and, if so, whether it is likely to be effective. As we have noted, the Direct Taxes Code proposes to introduce a significantly broad GAAR in India, with limited guidance as to its application.

In this context, it may be of interest to note that the UK Treasury has recently constituted a high-powered committee of which Lord Hoffmann and other distinguished jurists are members, to consider tax avoidance techniques in other jurisdictions, “what a UK GAAR can usefully achieve” and the “basic approach of a GAAR”. A list of the topics the Committee proposes to examine is available here. Of particular relevance to us are questions about the relationship between a GAAR and the existing tax code, the burden of proof and scope of application.

About the author

V. Niranjan

Add comment

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Recent Posts

Topics

Recent Comments

Archives

web analytics