Article 30. Tax Avoidance

  1. Legislative measures directed to denying Tax effectiveness to otherwise legal transactions whose purpose is principally directed to the reduction of Tax liabilities of particular Taxpayers and which are artificial, blatant and contrived are appropriate measures to maintain the integrity of the taxation system.
  2. Such measures need to recognise both the purpose of many provisions of taxation law which afford Tax relief to Taxpayers who enter into transactions as an incentive for them to do so, and also the legitimacy, within clearly defined limits, of Taxpayer choice of the form of transactions and business structures which the Taxpayer will adopt.
  3. Tax avoidance legislation shall be drafted with sufficient clarity that its scope can be readily understood and discretion shall not be granted to Tax Officers beyond the specific words of the Tax avoidance legislation.