Revenue Scotland and Tax Powers Act 2014 section 62

The general anti-avoidance rule: introductory

Section 62 introduces the general anti-avoidance rule (GAAR), which gives Revenue Scotland the power to counteract tax advantages that arise from artificial tax avoidance arrangements.

• This part of the Act establishes the general anti-avoidance rule, commonly known as the GAAR
• The GAAR targets tax advantages that arise specifically from tax avoidance arrangements
• The arrangements in question must be considered artificial for the GAAR to apply
• The purpose of the GAAR is to counteract — that is, neutralise or reverse — any tax advantage gained through such artificial arrangements