General Anti-Avoidance Rule in Latvian Tax Law

• Author: Milana Belevica - Janis Grasis
• Position: PhD Candidate, Riga Stradins University, Latvia & Sworn attorney at law - Associate Profesor, PhD, BA School of Business and Finance, Latvia
• Pages: 97-105

JURIDICA

97

General Anti-Avoidance Rule in Latvian

Tax Law

Milana BELEVIČA

1

, Jānis GRASIS

2

Abstract: The tax law systems of the EU Member States differ strongly; one is based on the specific

anti – avoidance provisions governed by the general principle of p rohibition of abuse stated in court

jurisprudence, the basement of the other is a written judicial rule which prohibits the abuse – general

anti – avoidance rule. General anti-avoidance rules are needed because of conflicts of laws in the

borders of one state as well the conflicts of different state’s jurisp rudence. There is no legal definition

of tax avoidance in the EU law nevertheless the notion of tax avoidance is firmly connected to the

concept of abuse of law – a general principle of EU law which has got its prompt development in the

resent tax case law of the Court of Justice of the European Union (CJEU). The UK practice is

undoubtedly the positive example of methodologically precise legal ruling in the sphere of

complicated abstract issues of abuse in tax law. This paper aims to describe the concept of general

anti avoidance rule, comparing theoretical cognitions, regulation in Latvia and UK and also tax case

law of the Court of Justice of the European Union.

Keywords: tax avoidance; general anti avoidance rule; harmonization of the anti–abuse provisions

1. Theoretical Background

The inspiration for this article has been found in the works of the professor of

Australian National University John Braithwaite which are devoted to specific

issues of taxation; more precisely – tax avoidance issues. The core line of his tax

research is the argument that tax law needs the deep integration between rules and

principles more than other areas of law. Using the Joseph Raz definition: “Rules

prescribe relatively specific acts; principles highly unspecific actions”

(Braithwaite 2005, p.144), Braithwaite shows the problems of tax law in respect to

1

PhD Candidate, Riga Stradins University, Latvia & Sworn attorney at law, Address: Street

Dzirciema 16 (Pārdaugava), Rīga, LV-1007, Latvia, Tel: +371 67061595, E-mail:

milana.belevica@inbox.lv.

2

Associate Profesor, PhD, BA School of Business and Finance, Latvia, Address: K.Valdemara

str.161, Riga, Latvia, LV-1013, Tel.: Corresponding author: janis.grasis@ba.lv.

AUDJ, vol. 12, no. 1/2016, pp. 97-105