An analysis of the South African general anti-avoidance rules: Exploring Australian judicial experience – N Bauer and DP Schutte

The decisions of recent Australian case law relating to the general anti-avoidance regime was cause for concern among the Australian tax community, as the Assistant Treasurer proclaimed that the Australian Government will protect the integrity of the Australian tax system by making amendments to the general anti-avoidance regime as a direct response to the loss of recent Part IVA court cases. In many ways, the South African and Australian general anti-avoidance rules are similar. Since uncertainties in South Africa exist regarding the interpretation and application due to the fact that the South African general anti-avoidance rules have not yet been applied on a practical basis in the courts, this article analyses the South African general anti-avoidance rules with reference to the facts of selected principles from Australian case law, which spurred on the legislative changes in Australia.