The government has announced this afternoon that
it will appoint an interim advisory group to oversee the development of guidance on the new General Anti-Abuse Rule (GAAR). The GAAR is being introduced to deter and counter abusive tax avoidance, while providing certainty, retaining a tax regime that is attractive to businesses, and minimising costs for taxpayers and HMRC.
Which is odd, as there is no law as yet.
But it's also worrying for two reasons. First because:
HMRC will not be represented on the Advisory Panel (including the interim group), but will support both with administrative and secretariat resources.
So now we have a key section of law to tackle private sector abuse to be run by the private sector. That's simply not appropriate in a democracy.
Second:
Until this time an interim group of panel members led by Graham Aaronson QC will oversee the development of the new guidance, after it is published for public consultation in December.
Graham Aaronson will invite bodies representing business and the professions to work with him, as he brings the interim group together, to ensure that an appropriate spread of interests is involved, including business, tax advisers, and wider taxpayer interests.
I sincerely hope that includes trade union and civil society representation. That might provide some balance. Having HMRC involved though is also vital. Without it we have undermined a fundamental principle that government is democratically accountable, as this group has to be by HMRC involvement.
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Next up, Roman Empire-style tax farming?
The capture of tax policy and administration in the UK by corporate and other vested interests carries on remorselessly despite the public and political outrage against tax abuse. The British Establishment never ceases to amaze with its resilience and ruthless contempt for the people.
I wouldn’t hold my breath about unions or civil society being represented for the simple reason that the tories hate unions.
if the law is bad, as this GAAR is designed to be, union or civil society representation in the implementing body will make no difference. at the moment everybody including back bench politicians, unions and civil society are having their say on tax avoidance and evasion but the multinationals and high networth individuals continue to have their
way. it’s the system that has to be changed and it will be a pity if those best equipped to do so ‘sell out’ in the name of civil society representation.
Point taken. I had never thought of it that way.
Sorry my security software did something odd.
A nice cosy little club will discuss the Generally Articulated Avoidance Ruse, which is as much use as a chocolate fireguard.
sorry “Genial Articulated Avoidance Ruse”
This would almost be laughable if it were not so tragic.
Richard
TP has “legitimised” avoidance for Multi-Nationals.
I’m sure the purpose of GAAR is to likewise “legitimise” it for smaller Cos & businesses.
Today they had discussion on R4 Money Box regarding how someone could pay less IHT under certain circumstances. The advice was to use a fully trained solicitor.
Now, for most people, except the really v wealthy, the cost of that Sol’s’ fees are likely to be most of the “tax saving”. So, what have you gained ?
Well, I suppose you’ve ensured your money won’t go to ludicrous nonsense like schools or hospitals. It’ll go to the firm of solicitors instead.
Speaking as someone whose just come back, with my son, from Children’s A&E, I’d like my gelt to go to them, but maybe I’m just a fool !
No, you’re the wise one
Actually, of course, if IHT is an issue for you, it means you have family assets of £600K plus. So, the cost of a solicitor is not such a big deal. For most people, IHT is simply irrelevant.
More importantly, you should get a solicitor to do the will so that it does what it is supposed to and doesn’t cause large problems for your relatives after your death.