Further consultation on strengthening sanctions for tax avoidance

28 July 2015

Following consultation in early 2015, a further consultation document has been published on measures for serial avoiders, serial promoters, and how to introduce specific penalties where the General Anti-Abuse Rule (GAAR) applies.

This consultation builds on the responses to the earlier consultation ‘Strengthening Sanctions for Tax Avoidance’ published in January 2015. It details proposals on how each of the measures would work and asks for comments on those details. For serial avoiders, this detail includes how the regime should be structured and what the entry criteria should be; what extra reporting requirements should apply to serial avoiders; how a surcharge might work; restricting access to certain reliefs; and when it would be appropriate to name the most persistent serial avoiders.

For the GAAR Penalty, this detail includes the circumstances in which a penalty will be charged; the penalty rate chargeable; and safeguards to ensure proportionality. The consultation also sets out some further areas for consideration under the GAAR. For Promoters of Tax Avoidance Schemes, this detail includes the new threshold criteria definitions, including the number of schemes to be considered over a specified period of time.

This consultation closes on 14 October 2015.