The Possibility of Amending New Zealand’s General Anti-Avoidance Rule

(2013) 26 New Zealand Universities Law Review 522-559.

35 Pages Posted: 21 May 2014 Last revised: 7 Aug 2014

See all articles by Michael Littlewood

Michael Littlewood

University of Auckland - Faculty of Law

Date Written: May 19, 2014

Abstract

In 2011 a Committee comprising representatives of the New Zealand Law Society, the New Zealand Institute of Chartered Accountants and an organisation called the Corporate Taxpayers Group published a Report proposing that the General Anti-Avoidance Rule or GAAR contained in ss BG 1 and GA 1 of the Income Tax Act 2007 should be amended. This article assesses the proposed amendments and concludes that, far from clarifying the law as claimed by the Committee, they would have the opposite effect; that they would consequently tend to increase the amount of litigation; and that they would permit forms of tax avoidance currently proscribed. The article concludes also therefore that it would be a mistake for the government to implement the Committee’s recommendations.

Keywords: Tax avoidance, general anti-avoidance rules, New Zealand, drafting

Suggested Citation

Littlewood, Michael, The Possibility of Amending New Zealand’s General Anti-Avoidance Rule (May 19, 2014). (2013) 26 New Zealand Universities Law Review 522-559.. Available at SSRN: https://ssrn.com/abstract=2439064 or http://dx.doi.org/10.2139/ssrn.2439064

Michael Littlewood (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

Register to save articles to
your library

Register

Paper statistics

Downloads
125
Abstract Views
491
rank
224,585
PlumX Metrics