general anti-avoidance rules (gaar)

General anti-avoidance rules (GAAR) refer to a set of legal provisions or regulations in a country's tax system that are designed to prevent taxpayers from exploiting loopholes or engaging in artificial transactions solely for the purpose of avoiding tax obligations. These rules serve as a deterrent against aggressive tax planning and aim to ensure that taxpayers pay their fair share of taxes, by allowing tax authorities to disregard transactions or impose tax consequences that are more aligned with the economic substance of the arrangements rather than their legal form.

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