Is GAAR unconstitutional???

[LisaContractorUmbrella]

The UK is the only country that I'm aware of which allows so much abuse. You know the "I haven't given you any money, it's a loan from the Cayman Islands, wink wink nudge nudge", and a judge would actually accept it.

In any other country a judge would take a pragmatic view say "what a bloody cheek" slam his hammer down and tell you to pay your tax.

The UK badly needs to have this same approach because the only winners are accountants running tax schemes, and I think something like GAAR is the only way.

Just look the amount of ruined contractors to see what clever tax planners achieve. Sure some get away with it most of them it's just havoc.

I don't see this impinging on "honest" umbrella schemes or contractors running Ltd.

I think that you are right that we need something to stop take the p*** avoidance but it worries me that legislation would be based on HMR&C guidance rather than the other way round i.e. at the moment HMR&C guidelines are based on legal precedents

[BlasterBates]

The UK is the only country that I'm aware of which allows so much abuse. You know the "I haven't given you any money, it's a loan from the Cayman Islands, wink wink nudge nudge", and a judge would actually accept it.

In any other country a judge would take a pragmatic view say "what a bloody cheek" slam his hammer down and tell you to pay your tax.

The UK badly needs to have this same approach because the only winners are accountants running tax schemes, and I think something like GAAR is the only way.

Just look the amount of ruined contractors to see what clever tax planners achieve. Sure some get away with it most of them it's just havoc.

I don't see this impinging on "honest" umbrella schemes or contractors running Ltd.

[LisaContractorUmbrella]

Some people certainly think so GAAR proposals could be unconstitutional - 23 Oct 2012 - Accountancy Age

The Government legislating based on HMR&C guidance - oh dear God