The US has and the UK is considering enacting an anti-avoidance statute. Don Korb and Aditi Banerjee provide a comparison of both countries’ anti-avoidance case law which may be useful in understanding these rules
The US Congress recently codified what has been historically a judicially developed doctrine requiring a taxpayer to satisfy an ‘economic substance’ standard when determining whether the taxpayer is entitled to tax benefits from a particular transaction. The UK Government has also announced a proposed consultation on the possibility of introducing a statutory general anti-abuse rule for taxes.
These two events are a striking development; traditionally both countries have relied on the courts to appropriately interpret the statutory tax law in order to adjudicate the appropriate tax result. In light of these developments a brief comparative exploration of the US and UK judicial approaches to tax-avoidance transactions may be useful and the US experience...
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The US has and the UK is considering enacting an anti-avoidance statute. Don Korb and Aditi Banerjee provide a comparison of both countries’ anti-avoidance case law which may be useful in understanding these rules
The US Congress recently codified what has been historically a judicially developed doctrine requiring a taxpayer to satisfy an ‘economic substance’ standard when determining whether the taxpayer is entitled to tax benefits from a particular transaction. The UK Government has also announced a proposed consultation on the possibility of introducing a statutory general anti-abuse rule for taxes.
These two events are a striking development; traditionally both countries have relied on the courts to appropriately interpret the statutory tax law in order to adjudicate the appropriate tax result. In light of these developments a brief comparative exploration of the US and UK judicial approaches to tax-avoidance transactions may be useful and the US experience...
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:
