Amendment to the general anti-avoidance rule (“GAAR”)
Anti-avoidance Commission and administrative procedure
- An Anti-Avoidance Commission is created for assessing conducts that may qualify as elusive, in accordance to the GAAR. The Anti-Avoidance Commission acts upon request of a special committee of the IRS created for this purposes.
- In order for the IRS to apply the GAAR, a new administrative procedure is regulated.
- Fine cap to tax advisors is increased up to 250 Annual Tax Units (approx. US$210,000).
- Mention to the principle of good faith of taxpayers is removed.
- Free exercise of options is extended to alternatives set forth not just in the tax legislation, but in the whole legal system.
- GAAR are applicable to business restructuring operations, notwithstanding the existence of a special control rule.
- Establishes and regulates the concept of artificial conducts for purposes of the GAAR application.