Summary
Summary GAAR
- Course
- Institution
This document provides a detailed summary of the GAAR dealt with in the Tax Legislation
[Show more]
Seller
Follow
mandylee14
Reviews received
Content preview
GAARGeneral Anti-Avoidance Rules
Tax Evasion:
Illegal activities deliberately taken to free himself from tax burden.
E.g omits income from annual tax return or overstating expenditure.
Subject to severe penalties in terms of s234 and s235
Tax avoidance:
Arrangement of affairs that is perfectly legal and lawful that results in a
reduction of income.
E.g donate interest bearing investment of R 100 000 to major child
without being affected by s7(3) or donations tax.
Impermissible (unallowed) tax avoidance:
S80A-s80L
Provisions can only be applied if the following are met:
1. Arrangement
2. The arrangement must result in tax benefit (defined in s1)
3. Sole or main purpose was to obtain tax benefit.
4. If avoidance was in the context of the business, then one of the
following:
a. Means/ manner not normally employed. S80A(a)(i)
b. Rights/ obligation not normally created. S80A(c)(i)
c. Lack of commercial substance. S80A(a)(ii)
d. Misuse/ abuse of provisions of the Act. S80A(c)(ii)
If avoidance was in the context other than business (personal/ private),
then one of the following:
a. Means/ manner not normally employed. S80A(a)(i)
b. Rights/ obligation not normally created. S80A(c)(i)
c. Misuse/ abuse of provisions of the Act. S80A(c)(ii)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mandylee14. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.75. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50064 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now