Tag: Tax avoidance
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GAAR and Tax Treaties
[The following guest post is contributed by Dr. Nigam Nuggehalli, who is an Associate Professor at Azim Premji University, Bangalore] The General Anti-Avoidance Rules (GAAR), to be in effect from April 1, 2017, were introduced by the government in a fit of frustration. The government found that many profitable companies were successful in avoiding tax
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Scheme of Arrangement & Tax Authorities: The Vodafone Essar Case
Lately, the income tax authorities have been actively objecting to schemes of arrangement initiated under sections 391 to 394 of the Companies Act, 1956 on the ground that the schemes are intended to avoid applicable taxes. Such objections are usually raised when the scheme is presented for sanction of the High Court. This scenario has
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Recent AAR Rulings on the ‘Mauritius route’
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The GAAR Guidelines
One of the major changes implemented by the Finance Act has been the introduction of the General Anti-Avoidance Rules (GAAR). The Government has recently issued draft GAAR Guidelines in this connection, which can be downloaded from here. It is proposed to introduce a monetary threshold for invocation of the GAAR provisions, and time limits (such
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The Bombay High Court on applying Vodafone to Sham Transactions
In Killick Nixon v DCIT, decided on 6 March 2012, a Division Bench of the Bombay High Court (Dr DY Chandrachud and MS Sanklecha JJ.) has considered the application of the guidance given by the Supreme Court in Vodafone to a transaction that was found at first instance to constitute a sham. The attempt by
