General Anti-Avoidance Rule

The General Anti-Avoidance Rule (the "GAAR") is set out in section 811C of the Taxes Consolidation Act 1997. It is intended to defeat the effects of transactions which have little or no commercial reality but are intended to reduce, avoid or defer a tax or duty charge or to artificially create or increase a tax deduction. It provides, that in relation to tax avoidance transactions,that Revenue can take all necessary measures to withdraw or deny the tax advantage.

Protective Notifications

Protective notifications are notifications made to Revenue in relation to a transaction undertaken by the taxpayer.

If a taxpayer has entered into a transaction which it would be reasonable to consider is a tax avoidance transaction under the GAAR then the taxpayer should not claim the tax advantage when submitting their tax return.

However, if the taxpayer is of the view that they have not entered into a tax avoidance transaction but the taxpayer wishes to mitigate the consequences of Revenue assessing that the taxpayer has entered into a tax avoidance transaction, the taxpayer can file what is known as a protective notification under section 811D of the Taxes Consolidation Act 1997.


Full details of how the mechanism operates from 23 October 2014 are set out in the following:

pdfDetailed Guidance Note (PDF, 123KB)


January 2016

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