China Issues Draft GAAR Guidance for Public Comment

On 3 July 2014, China's State Administration of Taxation issued draft administrative guidance on domestic general anti avoidance rules for public comment. The following provides an overview of the main aspects of the guidelines.

Tax Avoidance Arrangements

The main features of a tax avoidance arrangement are defined as when:

• Its sole or main purpose, or one of its main purposes, is to obtain the tax benefits, which refer to the reduction, avoidance, or deferral of corporate income tax; an…