A1.535 GAAR in Scotland

A1.535 GAAR in Scotland

The Scottish general anti-avoidance rule (GAAR)1 is designed to combat unacceptable avoidance. It is wider than the UK GAAR in that it targets tax advantages arising from artificial tax avoidance arrangements2, rather than focussing on the counteraction of tax advantages arising from arrangements that are abusive (see A7.410)3.

A tax avoidance arrangement is one which can reasonably be said to have as its main purpose, or one of its main purposes, the obtaining of a tax advantage4. It is artificial if either5:


    •     it is not a reasonable course of action in relation to the tax legislation in question, or

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