It is widely believed that tax avoidance is set to be at the heart of the budget, with the Chancellor telling the Andrew Marr Show, yesterday, that the it would be “a budget for working people”, at the same time as pledging to “come down like a tonne of bricks” on those who used tax avoidance schemes.
Treasury sources have also fuelled speculation that tax avoidance will be the main element of the budget, by suggesting the government is set to adopt the GAAR, following a recent report by Graham Aaronson QC, despite businesses traditionally being wary of the General Anti-Abuse Rule (GAAR), due to it complicating tax planning, as under a GAAR companies have to disclose their tax arrangement in advance and schemes can be shut.
Mr Aaronson has attempted to address such concerns by businesses, by recommending an “anti-abuse” rule rather than an “anti-avoidance”, which would limit the scope of its application.
Mr Aaronson said: “A general anti-abuse rule narrowly targeted to deter such schemes, while not affecting responsible tax planning, should lead to a fairer, more principled and ultimately simpler tax system.”
The clampdown on tax avoidance is also expected to be used as a way to justify a reduction in the top rate tax, from fifty-pence to forty-five pence.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 5 views ) | permalink |
( 3.1 / 481 )
Random Entry
