CURRENT AFFAIRS

Detailed explanation-1: -Tax planning, being lawful, can be dealt with directly by establishing correct facts. GAAR provisions will not be invoked in such a case. this is an arrangement of tax evasion and not tax planning. Tax evasion, being unlawful, can be dealt with directly by establishing correct facts.

Detailed explanation-2: -The General Anti-Avoidance Rule (GAAR) is an anti-tax avoidance law in India.

Detailed explanation-3: -The GAAR is the provision of last resort in this regard and applies to deny tax benefits arising from a misuse or abuse of the provisions of the Act that would otherwise be available but for the GAAR.

Detailed explanation-4: -A GAAR is a provision of last resort that is capable of being invoked by a tax authority to strike down unacceptable tax avoidance practices that would otherwise comply with the terms and statutory interpretation of the ordinary tax law.

Detailed explanation-5: -The UK’s General Anti-Abuse Rule (GAAR) was introduced in 2013 to deter taxpayers from using tax avoidance schemes. The GAAR provides a statutory mechanism for HM Revenue & Customs (HMRC) to counteract tax avoidance arrangements which, although within the letter of the law, are not what was intended by parliament.