Section 47 — Prohibited tax avoidance arrangement

(1) The relevant tax authority may counteract a prohibited tax avoidance arrangement by way of adjustments, disregarding, or re-characterising the arrangement through an assessment, the modification of an assessment, amendment or disallowance of a claim or otherwise, in part or whole, unless the taxable person proves, to the satisfaction of the relevant tax authority, that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Act or any other tax law.

(2) For the purpose of this section prohibited tax avoidance arrangement means any arrangement where, having regard to the facts and circumstances, it is reasonable to conclude that—

(a) the main purpose of the arrangements was to obtain a tax benefit or advantage;

(b) obtaining the tax advantage is contrary to the object and purpose of the provisions of this Act or any other tax law;

(c) it results, directly or indirectly, in the misuse, or abuse, of the provisions of this Act or any other tax law; or

(d) it lacks commercial substance or coherence in whole or in part.

(3) In this section—

“tax benefit or advantage” is as defined in section 30 (3) of this Act;

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.