In: Accounting
Here in this case maureen is owning all the stock in green corporation, green owns 10000 shares of micro corppration.maureen wants to have a business relationshio with her but she dont want to pay tax where ishe has tovpay some money f.and her son suggested her to create brown corporation and maintain the organisation as soleholder.and yhen green transfered the atock to brown, following that brown wil be winding up the business afairs inretuen she wil receive a microstock in return for her shares of brown.it is a gain for maureen.
In many cases it is apparent thst the enwuiries concern attempts to avoid or minimise duty.here person who is enter to do transaction had to request the state revenue commisioner.it wil help them to decide whether if the transactiin were entered into,it would be an exempt relevent transaction.if a person who is proposing to enter into or carry out a tax avoidance scheeme,they can request state revenue commisioner to decide whether the general antiavoidence provision would be applied to the scheme.state revenue commissioner will help you to get some knowledge about duty implications of a proposed transaction.as a general rule,advice regarding the duty implications of other proposed transacyion will not be provided if duty position is not well established.it can be provided only when the duty position is well established and generally well known.
Authorities
Anti avoidence rule empowers the revenue authority.tax avoidence is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.general anti provisions will be dealt with in accordance with section 269 of the duties act.