The Chinese GAAR

HMRC brought in the UK’s general anti-abuse rule (UK GAAR) after much heated consultation. The end result was unappetising for all concerned with taxpayers scratching their heads over the double reasonableness test and the unsatisfactory guidance. By contrast the administrative measures published in December 2014 for the application of the general anti-avoidance rule in the People’s Republic of China (PRC GAAR) are short and to the point. HMRC can only look upon them with envy. The same must be true for taxpayers: as a taxpayer you do not want to have to apply the GAAR; but if you do have to at least in China you will know where you stand.