2.001 Additional Tax Imposed—anti-avoidance Rule

2.001 (1) In this section:

(a) that, but for this section, would result, directly or indirectly, in a tax benefit, or
(b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit,

but does not include a transaction that may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than for the purpose of obtaining a tax benefit;
“tax benefit” means a reduction, avoidance or deferral of tax payable under this Act;
“transaction” includes an arrangement or event.
(2) For the purposes of this section, a series of transactions is deemed to include any related transactions completed in contemplation of the series.
(3) If a transaction is an avoidance transaction, the administrator may determine the tax consequences to a transferee or a transferor in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.
(4) The tax consequences to any person, after the application of this section, must be determined only through an assessment under section 18.

2016-27-3, effective August 2, 2016; am. 2018-4-56.