«Anti-avoidance measures of general nature and scope – GAAR and other rules»

Until the 2011 tax reform, Liechtenstein only had specific anti-abusive rules (SAAR), but no general rules (GAAR). This meant that tax authorities and courts had to rely on a teleological interpretation and the substance-over-form doctrine. The reform introduced a GAAR that covers economic facts and their tax consequences. The aim is not to prevent taxpayers from choosing the most favorable tax structure, but to prevent abuse if there are no economic reasons for the chosen structure. Since the introduction of the GAAR, it has rarely been used due to high application hurdles. The GAAR emphasizes the systematic and teleological interpretation of tax rules and is based on the substance-over-form doctrine. Despite its limited use, it helps, together with SAARs and anti-abuse clauses in double tax treaties, to effectively protect tax rights.

Topics in the publication

• Tax law in Liechtenstein
• General anti-abuse rules (GAAR)
• Specific anti-abuse rules (SAAR)
• International tax treaties and BEPS
• Aspects of procedural law
• Case law and case examples
• Cooperation with international organizations