Tax Avoidance and the Effectiveness of General Anti-Avoidance Rules (GAAR): A Critical Assessment in Botswana’s Tax Framework
Tax Avoidance, General Anti-Avoidance Rules (GAAR), Botswana Tax Framework, Corporate Governance, Legal and Regulatory Compliance
AuthorsAbstractTax avoidance is still a key area of concern in modern-day tax systems, whereby both corporations and individuals exploit the legal loopholes to realise tax savings without breaching statutory laws. Botswana's General Anti-Avoidance Rules (GAAR) were aimed at strengthening the tax system through addressing the issues of tax avoidance structures and preserving the revenue base. This research presents an assessment of GAAR concerning its impact on the corporate law and taxation system in Botswana. The study will analyse how the implementation of GAAR is applied in practice, its conformity with international standards and its relevance to corporate governance. Legislative measures imported from other legislative measures, related cases and reports will be used in assessing whether GAAR addresses major tax avoidance schemes in Botswana while providing legal certainty to taxpayers. There are some challenges in terms of interpretation, the enforcement capacity of the government and limiting the rights of taxpayers while preserving the revenue base. Conclusion, while GAAR strengthens the integrity of the tax system in Botswana, its success is dependent on judicial clarity, efficient administration and compliance. This research contributes to the academic knowledge on corporate law as it goes beyond seeing GAAR as just a sanctioning mechanism for tax enforcement, but rather a tool for promoting corporate responsibility and sustainability.
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