New statutory general anti-avoidance rule (GAAR)
The government has issued a white paper for a new statutory GAAR. According to the proposal, the GAAR will apply if the main motive of the transaction or arrangement is to achieve tax effects. Furthermore, an overall assessment of the relevant circumstances of the transaction or arrangement must also be made, such as other economic effects and business values, the relevant tax regulations, if there are other ways of carrying out the transaction or arrangement, etc. The new regulation is anticipated to enter into effect from 1 January 2020.