The International Chamber of Commerce (ICC) has recently adopted a policy statement, produced by the ICC Commission on Taxation, on the application of anti-avoidance rules in the field of taxation.
It is critical that tax authorities understand that in order for businesses to be competitive, they must seek out the most efficient ways of carrying out business transactions. This is especially crucial in the context of the increasing globalization of businesses and the world economy.
In recent observations, there is a growing trend for tax authorities to disregard transactions relating to tax assessment based on their interpretations of anti-avoidance rules, which are at times quite extensive.
ICC upholds that the use of anti-avoidance rules of taxation that establish barriers to cross-border business transactions is counterproductive and should be stopped.
“These anti-avoidance rules are destructive to countries themselves, when other countries impose them on a home country multinational in a way that diminishes the home country tax base and produces a bilateral controversy,” said ICC Commission on Taxation Vice-Chair Cym Lowell.
Read the policy statement on anti-avoidance
rules
Staff Contact: Carol Doran Klein
