Revenue Law Journal, Vol. 19, No. 1, Article 4, 2009
16 Pages Posted: 22 Nov 2009 Last revised: 11 Jul 2011
Date Written: November 19, 2009
This article looks at the effectiveness, in the New Zealand context, of the application of a general anti-avoidance rule (GAAR) when the impugned transaction or arrangement is cross-border. The important issue is how the provisions of a double tax agreement have application to the transaction or arrangement when the GAAR is invoked by the revenue authorities.
In many countries, tax treaties prevail over domestic tax laws in the event of a conflict. Some countries provide expressly that their GAAR will apply to their treaties.The question is whether this is true for New Zealand, and whether there is anything peculiar in the New Zealand statutory scheme that gives guidance on whether tax treaties preclude or limit the application of the GAAR.
Keywords: general anti-avoidance, double tax agreements, cross border transactions
JEL Classification: K33, K34
Suggested Citation: Suggested Citation
Prebble QC, John and Elliffe, Craig, General Anti-Avoidance Rules and Double Tax Agreements: A New Zealand Perspective (November 19, 2009). Revenue Law Journal, Vol. 19, No. 1, Article 4, 2009 . Available at SSRN: https://ssrn.com/abstract=1509693