A general anti-avoidance rule (GAAR) for taxation seeks to tackle those who try to break the rules of taxation through the use of further rules.
Rather than considering intention, as a general anti-avoidance principle (GANTIP) does, a general anti-avoidance rule lays downs ways of interpreting a series of events to determine whether the benefit of tax legislation can be given to the taxpayer.
Rules are invariably open to interpretation, hence a general anti-avoidance rule runs the risk of increasing the opportunity for tax abuse.
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