Gaar?? what is it????

i also want to know.......

As far as the full form is concerned; GAAR means " General Anti-Avoidance Rules "
It is in recent limelight because of the vodafone case
It deals with the prevention of activities by any concern which ultimately result in Avoidance of Tax
 

The most attractive word in the world of Taxation at present is GAAR (General Anti Avoidance Rule). 

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In several countries; anti tax avoidance rules have been framed. 

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Business organisations tend to either pay no tax or too less the tax which is actually applicable to them. 

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They enter into certain ARRANGEMENTS (  this word is much wider than AGREEMENTS ) which result into low tax and/or deferrement of tax. 

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While applying GAAR by the Tax Authorities; they try to find out whether there is business substance in the agreement or just to avoid the tax such arrangement has been made. 

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If found that such arrangement is made  to avoid tax rather than the NEED of the BUSINESS; the tax authorities may disregard the whole or part of such  transactions and include the earnings in the assessee's income. 

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Penalties would also be imposed on the assessee. 

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The acute difficulty which is likely to be faced by the assessees in India is that the burden of not avoiding tax is on assessees whereas in many foreign countries it is on Tax Authorities to prove that arrangements have been entered into to avoid tax. 

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There  are  a wide difference between -

proving himself as not a THIEF if someone blames

than

the punishement of  sentence

is provided in the law

when one is PROVED to be a THIEF.

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By reading this article I had understood the meaning of GAAR.

Thank u..................