However be aware that if something isn't covered by the GAAR it doesn't mean it won't be tackled in another way. HMRC has stated that they will continue to tackle tax avoidance using existing anti-avoidance methods as well as the GAAR, where appropriate. The GAAR applies to the following taxes: Income Tax Corporation Tax (including amounts chargeable or treated as Corporation Tax) Capital Gains Tax Inheritance Tax
Petroleum Revenue Tax Stamp Duty Land Tax Annual Tax on Enveloped Dwellings
DISCLOSURE OF TAX AVOIDANCE SCHEMES: DRAFT REGULATIONS PUBLISHED
19 July 2013
HMRC has published a technical note, including draft regulations to amend the Disclosure of Tax Avoidance Schemes confidentiality hallmark and introduce a new employment hallmark.
HMRC believes that tax avoidance represents a significant part of the UK tax gap, using the tax law to obtain a tax advantage that Parliament never intended. They say it frequently involves contrived, artificial transactions that serve no purpose other than to reduce tax liability. And it enables some taxpayers to gain an unfair advantage, undermining confidence in the tax system.
HMRC’s anti avoidance strategy has three core elements:
Preventing avoidance at the outset where possible; Detecting it early where it persists; Countering it effectively by challenge by HMRC.
The Disclosure of Tax Avoidance Schemes (DOTAS) regime is a key component of the detection element of the strategy. It enables HMRC to:
Get early information about avoidance schemes and how they work - informing anti- avoidance legislation; Get information about who has used the scheme - informing our operational response; Reduce the supply of avoidance schemes and deter promoters and users from getting into avoidance.
You can find out more about the disclosure regime on the Tax Avoidance pages of the HMRC website.
In the “Lifting the Lid on Tax Avoidance Schemes” consultation in 2012, amendments to the confidentiality hallmark and a new employment income hallmark were proposed. Following that consultation and further informal discussion with interested parties HMRC has now issued draft regulations for consultation. The CIPP Policy Team will be studying these regulations and will issue a survey to members if appropriate.
RAISING THE STAKES ON TAX AVOIDANCE – CONSULTATION
13 August 2013
CIPP Policy News Journal
16/04/2014, Page 474 of 519
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