Anti-avoidance rules

Anti-avoidance rules are laws designed to prevent individuals or companies from using legal methods to reduce their tax liabilities in ways that violate the spirit of the law. While certain arrangements may be technically legal, these rules ensure that such strategies are not exploited solely to avoid paying taxes. Essentially, they serve as safeguards for tax fairness, closing loopholes that could be used to unfairly minimize tax obligations. These rules promote transparency and ensure everyone pays their fair share, maintaining the integrity of the tax system.