5 Replies
CA D. Singhal
(CA )
(490 Points)
Replied 24 April 2012
As far as the full form is concerned; GAAR means " General Anti-Avoidance Rules "
It is in recent limelight because of the vodafone case
It deals with the prevention of activities by any concern which ultimately result in Avoidance of Tax
Mohit
(CA)
(755 Points)
Replied 25 April 2012
Hmm thanks but not satisfactory... Could anyone share some article or something for better understanding of CCI'tes.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 26 April 2012
The most attractive word in the world of Taxation at present is GAAR (General Anti Avoidance Rule).
.
In several countries; anti tax avoidance rules have been framed.
.
Business organisations tend to either pay no tax or too less the tax which is actually applicable to them.
.
They enter into certain ARRANGEMENTS ( this word is much wider than AGREEMENTS ) which result into low tax and/or deferrement of tax.
.
While applying GAAR by the Tax Authorities; they try to find out whether there is business substance in the agreement or just to avoid the tax such arrangement has been made.
.
If found that such arrangement is made to avoid tax rather than the NEED of the BUSINESS; the tax authorities may disregard the whole or part of such transactions and include the earnings in the assessee's income.
.
Penalties would also be imposed on the assessee.
.
The acute difficulty which is likely to be faced by the assessees in India is that the burden of not avoiding tax is on assessees whereas in many foreign countries it is on Tax Authorities to prove that arrangements have been entered into to avoid tax.
.
There are a wide difference between -
proving himself as not a THIEF if someone blames
than
the punishement of sentence
is provided in the law
when one is PROVED to be a THIEF.
.
Akash Kumar Bajaj
("Nothing Beyond")
(100 Points)
Replied 13 July 2012
By reading this article I had understood the meaning of GAAR.
Thank u..................
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