Smink
Whipped that one out quickly didn't they!
David Gauke, the Treasury minister in charge of taxation, announced a raft of measures, including two that will come into force with immediate effect. He said the changes would raise £2bn by the end of the parliament.
“As a result of persistent avoidance… the government is announcing that the legislation will now apply... wherever a company is a party to tax avoidance arrangements,” Gauke said.
But it was the prospect of a new General Anti-Avoidance Rule (GAAR) that caused the most alarm. The rule, which was dismissed by the Labour government as “unworkable”, would give HMRC much more freedom to decide what constitutes tax avoidance.
Will Morris, head of the CBI tax committee, said a GAAR “would introduce a very unwelcome element of uncertainty to the tax system”.
Will Morris, head of the CBI tax committee, said a GAAR “would introduce a very unwelcome element of uncertainty to the tax system”.
There are other measures in the pipeline, designed to crack down on:
• the use of trusts to avoid paying income tax or national insurance on an employee’s pay;
• the creation of foreign exchange losses or gains in the accounts of investment firms;
• and the manipulation of VAT rules in so-called “supply splitting”.
• the use of trusts to avoid paying income tax or national insurance on an employee’s pay;
• the creation of foreign exchange losses or gains in the accounts of investment firms;
• and the manipulation of VAT rules in so-called “supply splitting”.
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