Tools Used by Countries to Counteract Aggressive Tax Planning in Light of Transparency

Intertax 46(2), Kluwer Law International, ISSN: 0165-2826, 2018

Posted: 21 Feb 2018

See all articles by Irma Johanna Mosquera Valderrama

Irma Johanna Mosquera Valderrama

Leiden University, Institute of Tax Law and Economics

Addy Mazz

Universidad de la República

Luis Eduardo Schoueri

University of São Paulo (USP)

Natalia Quiñones

Colombian Tax Institute

Craig West

International Bureau for Fiscal Documentation (IBFD); University of Cape Town (UCT)

Pasquale Pistone

Vienna University of Economics and Business

Frederik Zimmer

University of Oslo

Date Written: October 10, 2007

Abstract

The aim of this article is twofold. The first aim is to provide a comparative overview of the domestic anti-avoidance rules with specific reference to Brazil, Colombia, South Africa and Uruguay to evaluate the application of these rules to tackle aggressive tax planning. The second aim is to assess whether or not the application of general anti-avoidance rules (GAARs) in these countries is consistent and clear (transparent) for the taxpayer. The main argument is that to tackle aggressive tax planning, countries should have GAARs in accordance with the standard of fiscal transparency as developed in this article (i.e. availability, clarity, simplicity and reliability). Furthermore, the relationship between the taxpayer and tax administration should be enhanced considering mutual trust, legitimate expectations and respect for the taxpayers’ rights. This article provides recommendations to enhance the relationship between tax administration and taxpayers to facilitate a coordinated relationship. Such a coordinated relationship means, on the one hand, that the governments (tax administrations) are provided access to the information regarding the activities of the taxpayer; and, on the other hand, that taxpayers voluntarily disclose the structure and nature of the economic activities or businesses in the country.

Suggested Citation

Mosquera Valderrama, Irma Johanna and Mazz, Addy and Schoueri, Luis Eduardo and Quiñones, Natalia and West, Craig and Pistone, Pasquale and Zimmer, Frederik, Tools Used by Countries to Counteract Aggressive Tax Planning in Light of Transparency (October 10, 2007). Intertax 46(2), Kluwer Law International, ISSN: 0165-2826, 2018, Available at SSRN: https://ssrn.com/abstract=3121552

Irma Johanna Mosquera Valderrama (Contact Author)

Leiden University, Institute of Tax Law and Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

Addy Mazz

Universidad de la República

Avenida 18 de Julio 182
Montevideo, 11100
Uruguay

Luis Eduardo Schoueri

University of São Paulo (USP) ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

Natalia Quiñones

Colombian Tax Institute

Colombia

Craig West

International Bureau for Fiscal Documentation (IBFD) ( email )

Rietlandpark 301
Amsterdam, 1019 DW
Netherlands

HOME PAGE: http://www.ibfd.org/IBFD-Profiles/Craig-West

University of Cape Town (UCT) ( email )

Private Bag X3
Rondebosch, Western Cape 7701
South Africa

HOME PAGE: http://www.tax.uct.ac.za/aprof-craig-west

Pasquale Pistone

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Frederik Zimmer

University of Oslo ( email )

PO Box 6706 St Olavs plass
Oslo, N-0317
Norway

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