General Anti-Avoidance Rule

General Anti-Avoidance Rule

The RSTPA includes two definitions of ‘artificiality’ to make the Scottish approach to tax avoidance as comprehensive as possible. Revenue Scotland can take counteraction where either (i) a tax avoidance arrangement is not a reasonable course of action having regard to the principles and policy objectives on which the relevant tax legislation is based; or (ii) where the arrangement lacks economic or commercial substance. The Act also sets out a number of indicators of lack of commercial substance.

Tax fraud (effectively tax evasion) is a common law criminal offence in Scotland.

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