TMI BlogInsertion of new Chapter X-A.X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of this Chapter may be applied to any step in, or a part of, the arrangement as they are applicable to the arrangement. 96. Impermissible avoidance arrangement. (1) An impermissible avoidance arrangement means an arrangement, the main purpose of which is to obtain a tax benefit, and it (a) creates rights, or obligations, which are not ordinarily created between persons dealing at arm s length; (b) results, directly or indirectly, in the misuse, or abuse, of the provisions of this Act; (c) lacks commercial substance or is deemed to lack commercial substance under section 97, in whole or in part; or (d) is entered into, or carried out, by means, or in a manner, which are not ordinarily employed for bon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax benefit that would be obtained (but for the provisions of this Chapter). (2) For the purposes of sub-section (1), round trip financing includes any arrangement in which, through a series of transactions (a) funds are transferred among the parties to the arrangement; and (b) such transactions do not have any substantial commercial purpose other than obtaining the tax benefit (but for the provisions of this Chapter), without having any regard to (A) whether or not the funds involved in the round trip financing can be traced to any funds transferred to, or received by, any party in connection with the arrangement; (B) the time, or sequence, in which the funds involved in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including by way of but not limited to the following, namely: (a) disregarding, combining or recharacterising any step in, or a part or whole of, the impermissible avoidance arrangement; (b) treating the impermissible avoidance arrangement as if it had not been entered into or carried out; (c) disregarding any accommodating party or treating any accommodating party and any other party as one and the same person; (d) deeming persons who are connected persons in relation to each other to be one and the same person for the purposes of determining tax treatment of any amount; (e) reallocating amongst the parties to the arrangement (i) any accrual, or receipt, of a capital nature or revenue nature; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Chapter shall be applied in accordance with such guidelines and subject to such conditions, as may be prescribed. 102. Definitions. In this Chapter, unless the context otherwise requires, (1) arrangement means any step in, or a part or whole of, any transaction, operation, scheme, agreement or understanding, whether enforceable or not, and includes the alienation of any property in such transaction, operation, scheme, agreement or understanding; (2) asset includes property, or right, of any kind; (3) benefit includes a payment of any kind whether in tangible orintangible form; (4) connected person means any person who is connected directly or indirectly to another person and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of that other person; or (ii) the person being a company, firm, association of persons, body of individuals, whether incorporated or not, or a Hindu undivided family, or any director, partner or member of such company, firm or association of persons or body of individuals or family, or any relative of such director, partner or member, has a substantial interest in the business of that other person; (5) fund includes (a) any cash; (b) cash equivalents; and (c) any right, or obligation, to receive or pay, the cash or cash equivalent; (6) party includes a person or a permanent establishment which participates or takes part in an arrangement; (7) relative sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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