Skip to main content

In This Volume

2.001 (1) In this section:

  • “avoidance transaction” means a transaction
  • (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.