Tax Collection and Management (Wales) Act 2016 section 81A

Meaning of "general anti-avoidance rule" and overview

Section 81A introduces Part 3A of the Act, which establishes a general anti-avoidance rule (GAAR) to counteract tax advantages gained through artificial tax avoidance arrangements.

• Part 3A of the Act provides a framework for counteracting tax advantages that arise from artificial tax avoidance arrangements.
• Key terms — "tax avoidance arrangement", "artificial", and "tax advantage" — are defined in sections 81B to 81D of the Act.
• The Welsh Revenue Authority (WRA) has the power to make adjustments to counteract tax advantages, with specific procedural steps set out in sections 81E to 81G.
• The rules contained in Part 3A are collectively known as "the general anti-avoidance rule" or GAAR.