Anti-Avoidance Measures

The object of anti-avoidance measures, as they relate to tax havens, is to prevent the reduction or avoidance of tax through the displacement of one or more connecting factors (i.e. the basis of tax liability) from the taxing jurisdiction concerned to a tax haven jurisdiction.

Anti-avoidance measures may refer to specific tax havens or may be of general application. Any measures usually appear in domestic tax systems; they may however be imposed by tax treaties.