Analyzing the Portuguese and Angolan General Anti-Abuse Rules (GAARs)
The Angolan General Tax Code has recently been updated to include a general anti-abuse rule (GAAR) in Article No. 26. This new provision aims to prevent potentially abusive tax planning schemes by taxpayers. The GAAR states that actions carried out with the aim of obtaining a tax advantage through the abuse of legal forms will be disregarded for tax purposes. Taxation will then be carried out in accordance with the rules applicable to the substance or economic reality of the acts.
Comparing this to Portuguese legislation, which also has a GAAR, we see some similarities and differences. Both countries require a valid economic reason that reflects the substance of the actions and arrangements. However, the Portuguese GAAR specifically addresses “constructions or series of constructions”, while the Angolan GAAR mentions “actions that have been carried out”.
The application of the Angolan GAAR is still in its early stages, but it is expected to align with international best practices related to Base Erosion and Profit Shifting (BEPS). The Angolan General Tax Authority (AGT) has been proactive in recent times, indicating that they may apply the GAAR in a similar manner to other countries.
In conclusion, while the Portuguese and Angolan GAARs are not identical, their application may be subject to similar principles and arguments. The challenge moving forward will be to see how the AGT interprets and applies the GAAR in practice.