Commentary on Sections Part 7 – General Anti-Avoidance Rule Section 81A TCMA - Meaning of “general anti-avoidance rule” and overview
83.This Part enables WRA to counteract tax advantages in relation to the devolved taxes that arise from artificial tax avoidance arrangements. Subsection (2) provides that the rules in this Part, taken together, are to be known as the general anti-avoidance rule (GAAR).
84.The term “avoidance” refers to a spectrum of activities designed to reduce tax charge in a manner which is contrary to the intention of the National Assembly for Wales when passing tax legislation. Subsequent sections in Part 7 define the terms used and provide more detail about how the provisions as a whole are to work.
85.The GAAR is intended to operate in tandem with targeted anti-avoidance rules (TAARs).