GAAR - Trinidad & Tobago - Iatj.net

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GAAR in the Caribbean: Income Tax Act of Jamaica, S.17 • “Where the Commissioner is of the opinion that any transaction…between connected persons was carried out for a consideration substantially different from that obtainable at arm’s length or for no consideration; and the effect…would be to reduce the amount of tax payable…the Commissioners may…treat the transaction as having been carried out for such consideration as would in his opinion have been obtainable at arm’s length: provided that [the subsection shall not apply if that person can satisfy the Commissioner that] (i) the transaction did not have as its object…the avoidance of tax; and (ii) the consideration…was of a value not less than the cost incurred…in providing the subject matter of the transaction….” 3rd IATJ Assembly Munich 18‐19 October 2012 36
GAAR in the Caribbean • Typically such provisions stress the fictitious or artificial nature of the transaction and allows the Revenue to disregard the transaction. The full amount of the tax then become payable. A standard provision from the Income Tax Act of Jamaica, s.16 reads as follows: “Where the Commissioner is of the opinion that any transaction which reduces the amount of tax payable by any person is artificial or fictitious, or that full effect has not been given to the disposition, the Commissioner may disregard any such transaction or disposition, and the persons concerned shall be assessed accordingly.” Similar provisions exist in the Income Tax Act, Trinidad and Tobago, S.67; the Income Tax Act of Barbados, S.29; the Income Tax Act of Guyana, S.74 and the Income Tax Act of St. Lucia, S.87. 3rd IATJ Assembly Munich 18‐19 October 2012 37
Page 1 and 2: ANTHONY DJ GAFOOR TRINIDAD & TOBAGO
Page 3 and 4: Topical nature of Anti‐Avoidance
Page 5 and 6: Distinguishing Tax Evasion, Avoidan
Page 7 and 8: Royal Commission on the Taxation of
Page 9 and 10: Review of Anti‐Avoidance principl
Page 11 and 12: Review of Anti‐Avoidance principl
Page 13 and 14: Common Law jurisdictions • Have i
Page 15 and 16: International tax evasion and avoid
Page 17 and 18: Hybrid developments • These may b
Page 19 and 20: Tax Treaties • Bilateral tax trea
Page 21 and 22: • However, for many developing co
Page 23 and 24: 3rd IATJ Assembly Munich 18‐19 Oc
Page 25 and 26: Revised Treaty of Chaguaramas • T
Page 27 and 28: Revised Treaty of Chaguaramas • I
Page 31 and 32: Treatment of anti‐avoidance in th
Page 33 and 34: Leading anti‐avoidance cases in t
Page 35: Jamaica and Barbados • These are
Page 39 and 40: Artificial transactions • Artific
Page 43 and 44: Wide scope of the anti‐avoidance
Page 45 and 46: Wide scope of anti‐avoidance prov
Page 47 and 48: St. Lucia • It was argued by the
Page 49 and 50: Jamaica • The leading case from t
Page 51 and 52: Jamaica • The Privy Council held
Page 53 and 54: Consequences of invoking the genera
Page 55 and 56: Specific Anti‐Avoidance Provision
Page 57 and 58: (3) Where a person transfers proper
Page 61 and 62: Background • In 1980s‐1990s, a
Page 63 and 64: Arguments • The rhetorical contes
Page 65 and 66: Lessons to be learnt • The need f
Page 67 and 68: Closing thoughts • Adam Smith oft

GAAR - Trinidad & Tobago - Iatj.net

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