Author : Cesare Silvani
Publisher :
ISBN 13 :
Total Pages : 100 pages
Book Rating : 4.:/5 (1 download)
Book Synopsis GAARs in Developing Countries by : Cesare Silvani
Download or read book GAARs in Developing Countries written by Cesare Silvani and published by . This book was released on 2013 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tax avoidance hits every country. A general anti-avoidance rule (GAAR) may be a tool to counter it, but it is a tool that must be handled with care, and not all countries may be in a position to introduce and apply it efficiently and 'safely'. This paper focuses on the developing countries' approach to, and use of, GAARs. Although the socio-economic development of a country should not affect how a GAAR is drafted and devised in theory, it may, directly or indirectly, influence how a GAAR works in practice. I first clarify the scope of the paper by defining the notion of both GAAR and developing countries and by carving out what IFA has already done in the past. The paper subsequently examines the statutory rules and the case law of twelve selected jurisdictions and, after that, the Commentary to Article 1 of the United Nations Model Convention. It then focuses on some policy and practical considerations, having particular regard to the relationship between anti-avoidance measures and growth, the capacity requirements for properly managing a GAAR, and the necessary safeguards to guarantee that taxpayers' rights be respected. Finally, the paper concludes that there are indeed aspects that distinguish (or may distinguish) in practice developing and developed countries and that although these differences may be limited with respect to some developing countries (e.g., the BRICSs), they suggest to be cautious in advocating for the weaker developing economies the same GAAR-recipes as used in developed countries.
