The funny thing about loopholes is that they can appear from nowhere.
In the world of UK tax the basic proposition is this: if the same transaction can be achieved in different ways it does not follow that each alternative must be taxed in the same way. So where:
an airline replaces its fleet by purchasing new aircraft outright (funded by debt equity or both) or by leasing them or by entering into a finance sale and leaseback; or
a hairdresser sets up in business as a sole trader or in partnership with others or as an employee of a corporate vehicle;
the objective of each option may be the same but the tax result is different. The means are as important as the ends.
These examples are taken from the official GAAR guidance. The point they are making is that...
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The funny thing about loopholes is that they can appear from nowhere.
In the world of UK tax the basic proposition is this: if the same transaction can be achieved in different ways it does not follow that each alternative must be taxed in the same way. So where:
an airline replaces its fleet by purchasing new aircraft outright (funded by debt equity or both) or by leasing them or by entering into a finance sale and leaseback; or
a hairdresser sets up in business as a sole trader or in partnership with others or as an employee of a corporate vehicle;
the objective of each option may be the same but the tax result is different. The means are as important as the ends.
These examples are taken from the official GAAR guidance. The point they are making is that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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