Designing a General Anti-Abuse Rule: Striking a Balance

(2014) 20 (3) Asia-Pacific Tax Bulletin 167 (International Bureau of Fiscal Documentation)

Oxford Legal Studies Research Paper No. 53/2014

8 Pages Posted: 30 Aug 2014

See all articles by Judith Freedman

Judith Freedman

University of Oxford - Faculty of Law; Oxford University Centre for Business Taxation

Date Written: August 28, 2014

Abstract

This article argues that statutory general anti-avoidance or anti-abuse provisions (GAARs) are an essential part of a modern tax system, since specific legislation will not catch every abuse. Properly drafted GAARs with appropriate protections can give administrators and courts an important tool to use in cases of egregious abuse, but the use must be within a legitimate framework suitable for the jurisdiction in question. GAARs are not the appropriate mechanism for a fundamental rewriting of domestic or international tax law, but they are a valuable element of the statute book in the fight to combat artificial tax arrangements.

Keywords: tax avoidance, general anti-avoidance rule, economic substance, statutory interpretation, advance rulings, tax administration

Suggested Citation

Freedman, Judith, Designing a General Anti-Abuse Rule: Striking a Balance (August 28, 2014). (2014) 20 (3) Asia-Pacific Tax Bulletin 167 (International Bureau of Fiscal Documentation) ; Oxford Legal Studies Research Paper No. 53/2014. Available at SSRN: https://ssrn.com/abstract=2488541

Judith Freedman (Contact Author)

University of Oxford - Faculty of Law ( email )

Worcester College
Walton Street
Oxford, Oxfordshire OX1 2HB
Great Britain

Oxford University Centre for Business Taxation ( email )

Worcester College
Oxford, Oxfordshire OX1 2HB
United Kingdom

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