GAARrrrr!

The finance ministry doesn’t seem to be having too much luck trying to convince FIIs that its General Anti Avoidance Rules (GAAR) aren’t aimed at them, but are more of an enabling tool to catch really big tax-evaders. Finance secretary RS Gujral met FIIs and told them that GAAR would be invoked only in the case of impermissible arrangements. In his words, “if they are in a permissible arrangement, clearly they are governed by the particular treaty and GAAR does not get invoked at all”.

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