Discerning The Judicial Trend In Recent Tax Avoidance Cases

The topic of tax avoidance is no stranger to controversy, having sparked lots of interest in both private and public discourse. With the advent of the Organisation for Economic Co-operation and Development (OECD) and G20's Base Erosion and Profit Shifting Action Plan (i.e. the BEPS Action Plan), this topic is even more prevalent than before. According to the OECD, national laws have not always kept pace with global developments, the fluid movement of capital and the rise of digital economy. Apparently, this leaves gaps and mismatches that can be exploited by businesses, thus undermining the fairness and integrity of tax systems. The OECD's stand on this matter somewhat mirrors that adopted by the Inland Revenue Board of Malaysia in public discourse, or at least in the four court cases discussed below.