GAAR - Trinidad & Tobago - Iatj.net

Artificial transactions
• Artificial transactions were defined by the Tax Appeal
Board of Trinidad & Tobago to mean:
• 1. a non arm’s length transaction where one party has
control over the other
• 2. which does not make commercial sense in that it is
unnatural and not one expected of persons acting freely
and independently with each other
• 3. there is a substantial disparity between the price at
which the transaction is carried out and the fair market
value
• 4. the circumstances surounding the transaction are such
that one can fairly infer that it was a device or
arrangement to reduce or avoid tax (Z Estates v Board of
Inland Revenue)
3rd IATJ Assembly Munich 18‐19 October 2012 39