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Introduction

General Anti Avoidance Rule (GAAR) is a new provision in the field of Direct Taxes which has come into force from 1st April 2017 (FY 2017-18). GAAR seeks to prevent aggressive tax avoidance, and has changed decades-old tax planning principles. GAAR affects all types of taxpayers: MNCs, Companies, Joint Ventures, LLPs, Firms, Individuals, etc. Besides, GAAR is applicable to all kinds of transactions (related party transactions or unrelated party transactions), investments (FDI or ODI), business operations (domestic or overseas) and tax-planning structures.

This one day program is essential for organizations seeking to lay down an effective strategy for GAAR. Such a strategy can achieve tax efficiency; avoid needless disputes with tax authorities; and curtail litigation.

Why should You attend?

  • Taxpayers and Tax Auditors are now statutorily mandated to report tax-planning arrangements in Tax Audit Report in Form 3CD.
  • It is must to acquire working knowledge of GAAR so that You can ensure the necessary compliance under GAAR.
  • On advent of GAAR (hand-in-hand with BEPS) You need to –
  • avoid getting into undesirable and adverse tax consequences
  • diligently review all your transactions, investments and tax-planning structures, whether in the domestic arena or the international arena;
  • evaluate any adverse implications of GAAR;
  • identify areas where GAAR can cause problems;
  • take appropriate corrective measures; and
  • suitably modify Your tax-planning and investment structures to prevent adverse impact of GAAR.
  • You need to learn about the necessary Documentation to prevent adverse implications of GAAR.

Ten Questions which the Workshop will Answer for the Participants

  1. What kinds of transactions are covered by GAAR?
  2. What is the compliance burden under GAAR?
  3. When does GAAR adversely apply to a Company?
  4. What will be the tax implications if GAAR is applied in my case?
  5. How do I review my existing tax planning arrangements and structures from the viewpoint of GAAR? What kind of review should I undertake?
  6. What changes should I make to my existing tax planning arrangements to prevent adverse application of GAAR?
  7. How do I achieve tax-efficiency in the era of GAAR and BEPS?
  8. How, and to what extent, has GAAR changed the age-old taxation principles and taxpayer-friendly judicial doctrines?
  9. Does GAAR affect my choice to implement a transaction in a way which minimizes the tax burden? Am I required to pay maximum possible tax in the era of GAAR?
  10. What documentation should I maintain to defend my tax planning arrangements before the Tax Authorities?
  11. What legal remedies are available to me for challenging undue and unreasonable application of GAAR in my case?

Key Takeaways

  • Dos and Don’ts on Tax Planning in the GAAR Era
  • Documentation required to meet challenges posed by GAAR
  • The Legislative Framework of GAAR
  • Changes made by GAAR in the area of Tax Planning
  • Ensuring compliance of various transactions and tax-planning structures with the elements of GAAR
  • Mitigating problems and adverse implications under GAAR
  • Comprehensive review of existing transactions, investments, operations and tax-planning structures from the perspective of GAAR
  • Carrying out necessary modifications to the transactions, investments, operations and tax-planning structures to make them GAAR compliant
  • Interaction of GAAR with BEPS, MLI and Poem