ANTI-AVOIDANCE MEASURES OF GENERAL NATURE AND SCOPE-GAAR AND OTHER RULES

ATL-Editor 2 December 2019

Paper by: Guillermo O. Teijeiro

Most countries have either judicial or statutory general anti-avoidance rules (GAAR); Argentina enrols in the second group as GAAR are of statutory nature. Countries in both groups frequently combine GAAR with special anti-avoidance rules (SAAR).

GAAR are generally applied to interpret tax rules, to characterize taxpayers acts and transactions (i.e., assessment of facts), or both, as it is the case in Argentina.

SAAR may be patterned after GAAR to emphasize their application in certain contexts, or may be specifically designed as mostly mechanical rules separate from the conceptual elements of GAAR. In both cases, the interaction between GAAR and SAAR is complex and frequently raises conflicts of application and overlap. The conflicts focus on whether SAAR exhaustively govern the tax avoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities... issue in their context of application to the exclusion of other rules or whether GAAR also apply in that context as a residual rule. Similar conflicts arise between domestic GAAR and treaty GAAR. Both are still open issues under Argentine tax lawTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public....

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Categories: Argentina, South America

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