General Anti-Avoidance Rules
Introduction:
The issue of tax evasion has been plaguing economics all over
the world and India is no exception. Since the days of League of
Nations, Countries are grappling to achieve a balance in mitigating
tax evasion without being a police state and interfering in day to
day business of a tax payer.
It is in this context, time and again Specific Anti Avoidance
Rules or judicial General Anti Avoidance Rules ("GAAR")
have been used as a tool to curb the menace of tax evasion.
However, with the evolution of business transactions and dynamics
of flow of money and informations such measures have often been
found lacking. Some of the Nations adopted a wider approach which
is commonly referred as GAAR.
