The General Anti Avoidance Rule

The General Anti-Avoidance Rules Direct taskes enroll Bill, 2009 Background Avoidance An attempt to sign on tax liability through legal means, i.e. to regulate your personal matters in such a way that you cede the negligible tax imposed by the Act as remote to the maximum Example Mr. A forms a caller-out to sell his products. The company pays 25% tax, but if he himself sold the products he would pay 30% Evasion Use of illegal means to digest tax liabilities, i.e. falsification of books, suppression of income, overstatement of deductions, etc. Example Mr. B sells his products for cash and does not bank the cash. Every man is entitle to ordain his affairs so that the tax attaching under the enamor Acts is less than it otherwise would be Lord Tomlin (IRC v. Duke of Westminster) 2 Direct Taxes Code Bill, 2009 ©2009 Deloitte Haskins & Sells. All rights reserved.

Anti-avoidance Anti Avoidance rules can be classified advertisement into following: ? Measures based on general principles in the fair play This refers to principles which atomic number 18 not codified in the legislation (non-statutory) They include a range of philosophies and approaches including substance over form abuse of law ? General Anti Avoidance rules It has same meaning as anti avoidance rules based on general principles in law except that it is codified and included in the legislation ? detail Anti Avoidance rules These are the specific anti-avoidance rules which applies to the specific situations- CFC, contract Capitalization rules, Exit Tax etc. India moved from the first stand for to the second stage by introducing GAAR under Domestic Tax Laws. 3 Direct Taxes Code Bill, 2009 ©2009 Deloitte Haskins & Sells. All rights reserved. General anti-avoidance provisions introduced The Commissioner sceptred to declare an organization as an impermissible avoidance musical arrangement (IAA) if: The whole, a step or a part of the arrangement has been entered with the objective of... If you want to get a full essay, order it on our website: Orderessay

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