Anti Abuse Rule Law and Legal Definition

Anti abuse rule means “if an issuer establishes the term of an issue for a period that is longer than is reasonably necessary for the governmental purposes of the issue for a principal purpose of increasing the permitted amount of private business use, the Commissioner may determine the amount of private business use according to the greatest percentage of private business use in any 1-year period.” [26 CFR 1.141-3; Title 26 -- Internal Revenue; Chapter I-Internal Revenue Service, Department Of The Treasury; Subchapter A-Income Tax; Part 1-Income Taxes; Normal Taxes And Surtaxes; Computation Of Taxable Income; Tax Exemption Requirements For State And Local Bonds]