Section 35 : General rule against tax avoidance

For purposes of ascertaining the tax liability pursuant to this Act, the Department may carry out the following:

(a) To re-characterise any arrangement or any part of such arrangement made or attempted to be made as a part of a tax avoidance scheme,

(b) To disregard any arrangement or any part of such arrangement that does not show any substantial effect or

(c) To re-characterise any arrangement or any part of such arrangement that does not show any substantial element.

Explanation: For purposes of this Section, “tax avoidance scheme’ means any arrangement with a main objective to have avoidance of tax liability or to lessen the tax liability.