A cluster of statutory provisions designed to stop certain arrangements that would otherwise reduce the taxpayer's tax liability. Important areas include dividend stripping, bond washing, manufactured dividends, and transactions in securities.
General Anti-Abuse Rule (GAAR) is a set of regulations to prevent tax avoidance by disallowing tax benefits from transactions, arrangements, or practices that have no substantial commercial purpose other than to gain a tax advantage.
A measure designed to counter tax avoidance in the UK by outlawing any arrangement that creates a tax advantage through means judged 'artificial and abusive.' The rule evaluates the reasonableness of the arrangements.
Minimizing tax liabilities legally and by means of full disclosure to the tax authorities.
