Income tax anti-avoidance measures : a Maltese perspective

Abstract

In the past decade or so, tax avoidance has acquired significant importance and is much debated. The structure of the tax system is critical for the developing of a workable environment which is capable of diminishing the opportunities for unacceptable tax avoidance. This thesis shall attempt to examme vanous anti-avoidance measures provided for by our legislator intended to combat possible abuse by taxpayers to reduce their tax bill. I have concentrated primarily on the anti avoidance provisions laid down in the Income Tax Act. However, such a discussion would not be complete unless reference is not made to anti avoidance rules within Malta's double tax treaties as well as anti-avoidance provisions within the international sphere. Thus, after assessing the meaning of the term 'tax avoidance' and evaluating both specific as wells as general anti-avoidance provisions within the IT A, reference shall also be made to the UK judicial approach. This is relevant due to the close connection our tax law has with the UK tax system.