Abuse not avoidance: What you need to know about the GAAR

In December 2010, the government announced its commitment to tackling tax avoidance, and commissioned tax lawyer Graham Aaronson to research the viability of a general anti-avoidance rule (GAAR). A GAAR would enshrine in legislation the idea that any tax scheme which is not in the spirit of the law, even if it is technically legal, would be void. Last week, Aaronson reported back, sparking relief and yet some controversy in the tax world. The report Aaronson recommended a general anti-abuse rather than avoidance rule. This helps to circumvent the argument over whether efficiency is ...