A Good Tax System Won't Be Good Without a Gaar – New Zealand vs China – A Case Study Approach

New Zealand's income tax law has included a general anti-avoidance rule since income tax's first enactment in the Land and Income Assessment Act 1891. China has just introduced a GAAR (中国的一般反避税条例) from 1 February 2015 in response to OECD’s税基侵蚀和利润转移( BEPS )项目.This paper uses a case study approach to illustrative how important a GAAR to supplement a good tax system by examining a potential scheme for the minimisation of tax liability of non-resident individuals and immigrants to invest in New Zealand properties by way of using a foreign trust structure, and the alienation of income from a taxpayer who bears tax at high rates to one who is taxed at low rates, while recognising possible risks of tax avoidance. This paper concludes that such scheme is likely to survive the specific anti-avoidance provisions but it will be caught as an incidence of tax avoidance in terms of the general anti-avoidance provisions under s BG 1 of the Income Tax Act 2007. China would never be too late but she lost 4.8 billion US$ revenue every year in the past