GAAR - Trinidad & Tobago - Iatj.net

Meaning of tax advantage
• “a relief or increased relief from, or repayment or
increased repayment of, income tax or the avoidance of a
possible assessment thereto, whether the avoidance or
reduction is effected by receipts accruing in such a way
that the recipient does not pay or bear tax on them, or by
a deduction in computing profits or gains.”(Income Tax
Act of Jamaica, S.18(10)).
• This is understood to mean as in Chasmin, that
capitalising undistributed profits through bonus
redeemable preference shares would attract a tax
advantage but distributing the undistributed profits
through dividends would attract tax.
3rd IATJ Assembly Munich 18‐19 October 2012 58