On 3 July 2019, the tax authorities published a guidelines regarding the new general anti-abuse rule (GAAR). The new GAAR, which applies from 1 January 2019, targets provisions that focus on tax-driven abuses of law.
According to the guidance, the new GAAR applies to transactions or actions whose primary purpose is to obtain a tax benefit that violates the subject matter or purpose of the applicable tax law. In particular, the new GAAR is without prejudice to the existing provisions, which are aimed exclusively at tax abuse. Taxpayers can ask the tax authorities if a particular issue is covered by GAAR. The absence of a response within 6 months is equivalent to a permit that is binding on the tax authorities.
