Strengthening Sanctions for Tax Avoidance
02 February 2015
HMRC has published the consultation paper, ‘Strengthening Sanctions for Tax Avoidance’, setting out proposals to tackle the serial use of tax avoidance schemes.
Tax avoiders can already face penalties, but this consultation proposes additional financial costs such as a surcharge and additional reporting requirements on users of multiple schemes that fail.
Serial avoiders use multiple tax avoidance schemes at the same time – whether using the same avoidance scheme in more than one year, or using different avoidance schemes – to avoid significant amounts of tax.
The consultation also considers whether, and how, to introduce additional penalties for cases where the General Anti-Abuse Rule (GAAR) applies. The GAAR counters the most abusive avoidance.
The closing date for comments is 12 March 2015
The Policy team will be reviewing these documents and if appropriate will issue a survey to gather members’ views.