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

Tax avoidance arrangements

Section 81B defines what counts as a "tax avoidance arrangement" for the purposes of the anti-avoidance provisions in the Act.

• An arrangement is a tax avoidance arrangement if obtaining a tax advantage for any person is the main purpose, or one of the main purposes, of the taxpayer entering into it.
• When deciding whether tax avoidance is a main purpose, WRA may compare the devolved tax that would have been payable without the arrangement.
• "Arrangement" is defined very broadly and covers transactions, schemes, agreements, operations, promises, events, and any series of these — whether legally enforceable or not.
• A "taxpayer" includes not only someone who is liable to devolved tax but also someone who would have been liable were it not for the avoidance arrangement.