Anti-Deferral Rules

Anti-Deferral Rules are tax regulations designed to prevent taxpayers from postponing taxes on certain income, especially in international contexts. They typically work by ensuring income earned from foreign investments or entities is taxed currently rather than deferred to a later period, even if the income isn’t received in cash. The goal is to prevent taxpayers from delaying tax payments through the use of offshore accounts or complex structures. These rules promote fair taxation by ensuring that income is taxed in the year it is earned, maintaining integrity and consistency in the tax system.