tax avoidance (week 7)

Question 1

what is the Ramsay principle?

Answer 1

Statutory interpretation and involves the courts looking at the purpose behind the legislation, and applying the tax rules based on the underlying substance of the transaction rather than its form.

Question 2

what is tax avoidance/tax planning?

Answer 2

efficient and lawful arrangement of a C’s affairs in a manner which minimises their liability to tax

Question 3

what is aggressive tax avoidance?

Answer 3

taxpayer entering into complex or artificial arrangements which have the overall effect of reducing their tax liability.

Question 4

what is tax evasion?

Answer 4

unlawful, where a taxpayer withholds information about assets or income to take steps to avoid paying tax they are liable for

Question 5

is the ‘family maintenance’ exception available in lifetime or death?

Answer 5

lifetime

Question 6

if a person is blind and make a will are they presumed to have knowledge?

Answer 6

no they are not