"Badges of Tax Avoidance": Reform Options for the New Zealand GAAR

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dc.contributor.author Cassidy, Julie en
dc.date.accessioned 2017-03-23T02:00:15Z en
dc.date.issued 2011-12 en
dc.identifier.citation New Zealand Business Law Quarterly, December 2011, 17 (4), 467 - 491 en
dc.identifier.issn 1173-311X en
dc.identifier.uri http://hdl.handle.net/2292/32295 en
dc.description.abstract South Africa, Australia and New Zealand have sought to tackle the problem of tax avoidance through General Anti-Avoidance Rules (“GAAR”), rather than relying solely on measures that tackle very specific examples of tax avoidance. This article compares and contrasts the approaches taken in South Africa, Australia and New Zealand. The legislative goals of the Australian and South African provisions are very similar but the strategies underpinning each piece of legislation differ. The specific prerequisites in the Australian legislation lead ultimately to the question of whether or not the taxpayer or other participants intended to obtain a tax benefit through the scheme. By contrast, the South African legislation begins with broad terms that cast a wide net, but then hones in on the application of Part IIA by focusing on the common attributes of tax avoidance arrangements. The New Zealand provisions take yet another tack with Parliament leaving it to the courts to develop judicial interpretive techniques to determine if arrangements amount to tax avoidance. The New Zealand GAAR thus echoes the South African approach to some extent, as its application revolves around quite broad terms. Unlike the South African provisions however, there is no legislative directive as to what may be called the “badges of taxavoidance”; namely, indicia of tax avoidance arrangements with these being left to the judiciary to formulate. It is ultimately suggested that this approach is too uncertain and legislative clarification is warranted. Such reform should entail the enactment of “badges of taxavoidance” that will not only give legislative direction to the courts but also provide taxpayers and their advisors with guidelines when determining if the subject arrangement crosses the line between legitimate structuring and a tax avoidance arrangement. en
dc.description.uri http://librarysearch.auckland.ac.nz/UOA2_A:Combined_Local:uoa_alma21129463350002091 en
dc.language English en
dc.publisher Research Centre for Business Law at The University of Auckland / Thomson Reuters NZ en
dc.relation.ispartofseries New Zealand Business Law Quarterly en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title "Badges of Tax Avoidance": Reform Options for the New Zealand GAAR en
dc.type Journal Article en
pubs.issue 4 en
pubs.begin-page 467 en
pubs.volume 17 en
dc.description.version VoR - Version of Record en
pubs.author-url http://www.westlaw.co.nz/maf/wlnz/app/document?docguid=Ibb4f4a701fab11e18eefa443f89988a0&tocDs=AUNZ_NZ_JOURNALS_TOC&isTocNav=true&startChunk=1&endChunk=1 en
pubs.end-page 491 en
pubs.publication-status Published en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Article en
pubs.elements-id 551982 en
pubs.org-id Business and Economics en
pubs.org-id Commercial Law en
pubs.record-created-at-source-date 2016-12-06 en


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