Anti-avoidance regulations

Anti-avoidance regulations are government rules that prevent individuals or companies from using legal methods to reduce their tax liabilities in ways that bypass the spirit of tax laws. While certain practices may be technically legal, these regulations ensure that strategies primarily aimed at avoiding taxes—rather than genuine business or financial planning—are challenged or disallowed. The goal is to maintain fairness in the tax system and ensure everyone pays their fair share, preventing exploitation of loopholes or complex arrangements meant solely to skirt tax obligations.