Section 36A: Anti-avoidance provisions

36A. Anti-avoidance provisions (1) Where the Director-General is satisfied that the purpose or effect of any arrangement or transaction is, directly or indirectly, to— (a) reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act; (b) relieve any person from any liability to tax; (c) alter the incidence or postpone the time due of any tax which is payable by or which would otherwise have been payable by any person; or (d) obtain credit for any input tax or repayment of any tax which would not otherwise have been obtained, the Director-General may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary, for the purposes of this Act, the arrangement or transaction and make such adjustments as he considers appropriate so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement or transaction. (2) This section shall not apply to any arrangement or transaction carried out for bona fide commercial reasons and does not have as one of its main purposes the avoidance or reduction of tax or the obtaining of any tax advantage. (3) For the purpose of this section— “tax advantage” includes— (a) any reduction in the liability of any person to pay tax; [Issue 10] V4 – 28 Revised Laws of Mauritius (b) any reduction in the total consideration payable by any person in respect of any supply of goods or services; (c) any postponement of the time when tax is due or payable; or (d) any increase in the entitlement of a person to a credit for input tax or repayment of tax. [S. 36A inserted by Act 25 of 2000.] PART VIII – ASSESSMENTS, OBJECTIONS AND REVIEW OF ASSESSMENTS [Part VIII amended by s. 22 (e) of Act 23 of 2001.]