Article 41 - General Anti-Abuse Rules

For the purposes of applying the provisions of this Article to a transaction, an arrangement, or a series of arrangements carried out by an Entity, the Bureau may disregard the transaction, or the arrangement, or a series of arrangements that result in obtaining any Tax advantage and may determine the Tax liabilities based on just and reasonable adjustments.

This Article applies to a transaction, arrangements, or any series of arrangements that may result in any of the following:

1. Where the income from the transaction, or the arrangement, or the series of arrangements, or any part thereof, or their execution was not for a genuine commercial purpose considering all relevant facts and circumstances or for a non-financial purpose that reflects the economic reality.

2. Where the primary purpose, or one of the primary purposes, of the transaction, or the arrangement, or the series of arrangements, or any part thereof, is to obtain a Tax advantage that defeats purpose or objective of this Law.

The Regulations shall prescribe the rules, conditions, and controls related to this Article in a manner consistent with the Model Rules, administrative guidance, and commentary issued by the Organisation for Economic Co-operation and Development (OECD).