Tax avoidance: a trans-Tasman comparative study

Abstract

Australia and New Zealand have developed specific and general tax anti-avoidance rules to ensure that taxpayers in each country operate within the spirit of the law and do not seek to gain an unintended tax benefit from arranging their affairs or entering into transactions in a particular manner. This article compares the operation of the general tax anti-avoidance rules in both countries. The article initially identifies the basic operation of the anti-avoidance rules in both countires and then goes on to contrast and compare the manner in which each country's rules seeks to combat tax avoidance. An evaluation of the effectiveness of the separate tax avoidance rules in combating tax avoidance is also undertaken.