Specific Anti-avoidance Rules (SAAR)

Parthasarathi Shome
Additional contact information
Parthasarathi Shome: London School of Economics

Chapter 28 in Taxation History, Theory, Law and Administration, 2021, pp 329-347 from Springer

Abstract: Abstract Globalisation has resulted in greater multinational enterprise (MNE) operations. Emerging economy MNEs are also establishing or acquiring subsidiaries abroad. MNEs carry out complex international transactions involving intangibles and multi-tiered services. They tend to structure transactions such that intra-group prices—transfer pricing—are determined reflecting tax considerations. This includes shifting of profits from one jurisdiction to another in a way that their global tax contributions are minimised. MNEs view such behaviour as ‘tax efficiency’. Tax administrations view it as comprising artificial means to avoid tax worldwide, that may be strictly legal but unintended in the law. Therefore, they have introduced anti-avoidance measures in their tax laws to minimise the shifting of the tax base abroad by MNEs to low-tax jurisdictions. Some rules against such ‘tax planning’ target specific identifiable means of tax avoidance and are, therefore, termed specific anti-avoidance rules (SAAR) for both domestic and international tax avoidance. Such rules attempt to contain tax avoidance through transfer pricing including excessive payments among related businesses for mutual international transactions, questionable sources of funds received as share capital or loans, transactions that strip out dividends or bonuses and artificial arrangements in transfers of movable property. Selected prevailing practices are examined in this chapter.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-030-68214-9_28

Ordering information: This item can be ordered from
http://www.springer.com/9783030682149

DOI: 10.1007/978-3-030-68214-9_28

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().