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May 15, 2026

Article 100 reinforces the Tax Authority's anti-avoidance powers regarding asset disposals. It clarifies that while the Authority may approve a price apportionment agreed between parties, it must intervene if the agreement appears to provide an 'unjust tax advantage'. In such cases, the Authority is empowered to ignore the contractually agreed-upon split and reallocate the sale price or insurance proceeds between the various assets according to its own determination of their 'correct value'. This ensures that disposal values used for tax calculations—and subsequent balancing charges—reflect the true economic reality of the transaction.

Part 3 - Chargeability to Tax

Chapter 3 - Depreciation of Capital Assets

Section 6 - Provisions Concerning the Disposal of Capital Assets

Article 100

[GTL Notes: Power of Authority to Approve or Reallocate Disposal Proceeds]

In the cases referred to in Clause (2) of Article 98 of this Law, the Authority may:

Approve the agreement between the parties on apportionment of the sale price or the amounts of insurance between the various items of the assets;
If it is obvious to the Authority that the apportionment agreed upon by the parties would afford an unjust tax advantage to any of them, the Authority shall apportion the sale price or the amounts of insurance between the various items of the assets in accordance with its view of the correct value of such items.