[Artificial tax avoidance arrangementsE+W
81BTax avoidance arrangementsE+W
(1)For the purposes of this Part, an arrangement is a ““tax avoidance arrangement”” if the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of a taxpayer entering into the arrangement.
(2)In determining whether the main purpose, or one of the main purposes, of an arrangement is the obtaining of a tax advantage regard may in particular be had to the amount of devolved tax that would have been chargeable in the absence of the arrangement.
(3)In this Part—
(a)an “"arrangement”” includes any transaction, scheme, action, operation, agreement, grant, understanding, promise, undertaking, event or any series of any of those things (whether legally enforceable or not);
(b)references to an arrangement are to be read as including—
(i)a series of arrangements, and
(ii)any part or stage of an arrangement comprised of more than one part or stage;
(c)“"taxpayer”” means a person liable to devolved tax or who would be liable but for the tax avoidance arrangement in question.
81CArtificial tax avoidance arrangementsE+W
(1)For the purposes of this Part, a tax avoidance arrangement is ““artificial”” if the entering into or carrying out of it is not a reasonable course of action in relation to the provisions of Welsh tax legislation applying to the arrangements.
(2)In determining whether the tax avoidance arrangement is artificial, regard may in particular be had—
(a)to any genuine economic or commercial substance to the arrangement (other than the obtaining of a tax advantage);
(b)as to whether the arrangement results in an amount of tax chargeable that it is reasonable to assume was not the anticipated result when the relevant provision of Welsh tax legislation was enacted.
(3)But an arrangement is not artificial if, at the time it was entered into or carried out—
(a)the arrangement was consistent with generally prevailing practice, and
(b)WRA had indicated its acceptance of that practice.
(4)Where a tax avoidance arrangement forms part of any other arrangements, regard must also be had to those other arrangements in determining whether the tax avoidance arrangement is artificial.
(5)In this section, “"Welsh tax legislation”” means—
(a)the Welsh Tax Acts, and
(b)any subordinate legislation (within the meaning of section 21 of the Interpretation Act 1978 (c. 30)) made under those Acts.
81DMeaning of ““tax”” and “tax advantageE+W
For the purposes of this Part—