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

Proceedings in connection with the general anti-avoidance rule

Section 81H establishes who bears the burden of proof when cases involving the general anti-avoidance rule come before a court or tribunal.

• When a dispute about the general anti-avoidance rule reaches a court or tribunal, WRA must prove its case — the burden of proof lies with WRA, not the taxpayer.
• WRA must demonstrate that the arrangement in question is an artificial tax avoidance arrangement.
• WRA must also show that any adjustments it has made, or proposes to make, to counteract the tax advantage are just and reasonable.
• This provision protects taxpayers by ensuring that WRA cannot simply assert avoidance without substantiating its position.