(January 30, 2015) 

On January 30, 2015 the HM Revenue & Customs opened a public consultation titled: “Strengthening sanctions for tax avoidance”. The government proposes to introduce new measures for serial users of tax avoidance schemes, and asks whether and how to introduce specific penalties for cases where the General Anti-Abuse Rule (GAAR) applies. The government seeks comments on whether to introduce these proposed measures, and on the detail of how these should be implemented. The closing date for comments is set at March 12, 2015.

The Consultation Document describes the subject of the consultation as follows: “Proposals to introduce new measures for serial users of tax avoidance schemes and how to introduce specific penalties for cases where the General Anti-Abuse Rule (GAAR) applies.

According to the consultation document the scope of the consultation is to seek comments on whether to introduce these proposed measures, and on the detail of how these should be implemented.

The consultation document discusses a.o. the following subjects:

·         New Measures for Serial Avoiders;

o        The problem:

o        Serial Avoiders;

o        Introducing surcharges for repeated use of schemes that fail;

o        Special Measures for Serial Avoiders;

o        Threshold Conditions;

o        Publishing the names of serial avoiders;

o        Safeguards;

o        Serial promoters;

·         Penalties for the GAAR:

o        Why introduce a penalty;

o        Impact of the GAAR on certainty for taxpayers;

o        How to introduce a penalty;

o        Scope of a GAAR penalty;

o        At what point should the penalty be triggered?

o        The amount of the penalty;

o        The GAAR Advisory Panel;

o        Safeguards;

·         Assessment of Impacts:

o        New Controls for Serial Avoiders;

o        Penalties for the GAAR;

Responses can be sent to the HMRC by e-mail or by normal post.

Click here to be forwarded to the Consultation Document as published on GOV.UK.

For further information click here to be forwarded to the news release as published on GOV.UK. This news release contains a link to the Consultation Document.

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