| Abstract [eng] |
General Norm of Anti-Avoidance in Corporation Income Tax: Concept and Assessment The main topics that are being discussed in this master's degree thesis are substance over form principle and the new general anti-abuse rule in Corporate tax law. Such decision was made based on similarities in application of these 2 topics. Substance over form principle is being applied in such cases, when there were infringements made in tax laws benefit‘s purpose and these benefits were the only tax payer‘s objective and therefore, no actual economic activity was being conducted. The new general anti-abuse rule added to Lithuanian tax system is based on European Union directive Nr. 2016/1164 and Organization's for Economic Co-operation and Development work and recommendations considering Base Erosion and Profit Shifting. Therefore, when general anti-abuse rule is being evaluated, is has also to be evaluated based on its explanations in other countries, organizations or European Court of Justice. General anti-abuse rule is similar to substance over form principle, however, its application is harsher and tax payer has to provide proof, that not only his economic activity is genuine, but he also did not have any significant desire to obtain tax benefits. In both cases, tax administrator is obliged to properly evaluate all circumstances and make a decision if taxpayers economic activity is not genuine. To do this, tax administrator has to evaluate all available circumstances, as there is no exhaustive list of such circumstances. In Lithuania, general anti-abuse rule can also be evaluated base on Corporate tax’s article’s 32(6), which is regulating general rule of combating abuse in parent companies and existing subsidiaries. |
