GAAR- my understanding (4 Nov 2012)

GAAR- General Anti-Avoidence Rules Of course it was in news recently. Then only I have heard of it. Most of us knew, by now, that its enforcement has been postponed to 2016 or so. All of us also knew that it was at the behest of hue and cry from the corporate citizens. During the past 15 days I was part of a small team which looked at the options/ permutations/ combinations of operating across tax havens for saving tax for an international business opportunity over the next 5 years. After understanding a little bit of some of theses things, it appeared to me that GAAR is going/likely to be the game changer to say the least. If it comes into force lot of entities will disappear. New agreements and new forms will take shape. The transition may not be smooth. Thats the reason many wanted a long rope. Lets see what is in store for us!