99. Transactions designed to avoid liability to tax
-
(1) Where the Comptroller has reasonable grounds to believe that the main purpose or one of the main purposes for which any transaction was or transactions were effected (whether before or after the commencement of this Act) was the avoidance or reduction of liability to tax for any year, he or she may, if he or she determines it to be just and reasonable, direct that such adjustments shall be made as respects liability to tax as he or she may deem appropriate so as to counteract the avoidance or reduction of liability to tax which would otherwise be effected by the transaction or transactions.
However, this subsection does not apply to any transaction the main purpose or one of the main purposes for which was to effect the succession by a resident company, incorporated for that purpose, to any business carried on by an individual or partnership.
-
(2) Without prejudice to the generality of the powers conferred by subsection (1) the powers conferred thereby extend—
-
(a) to the charging with tax of persons who, but for the adjustments, would not be chargeable with any tax, or would not be chargeable to the same extent;
-
(b) to the charging of a greater amount of tax than would be chargeable but for the adjustments; and
-
(c) payment of dividends at such intervals as would appear to be payment of a salary.