The scope and function of anti-avoidance provisions within tax law, differentiating between generally legal tax avoidance and illegal tax evasion. Central to these provisions is the General Anti-Abuse Rule (GAAR), which is a broad tool empowering tax authorities to counteract schemes that are considered abusive or undermine the spirit of the law, regardless of their technical legality. The document details the Double Reasonableness Test used to determine if an arrangement is abusive, requiring both objective and subjective assessments of the action's reasonableness. Significantly, the text emphasizes taxpayer safeguards under GAAR, including placing the burden of proof on tax authorities and requiring an opinion from an Independent Advisory Panel before applying the rule. Ultimately, if an arrangement is deemed abusive, tax liability is adjusted to reflect the true economic substance of the transaction, and the taxpayer may face penalties.