Concerns over UK tax avoidance rules

Business leaders have raised concerns that tax avoidance rules could be detrimental to small businesses.The CBI, a leading business group, told the Financial Times that it supports plans to outlaw “artificial and abusive” tax avoidance schemes but argues that the way the new rules have been drafted could affect “straightforward tax management” and undermine the UK’s competitiveness at this crucial time.The concerns have also been echoed by other industry experts, after the Treasury launched a consultation on a Gaar (general anti-avoidance rule) put forward by Chancellor George Osborne. John Cridland, CBI director-general, is quoted by the Financial Times as saying, “We are concerned that the latest proposal is too broad and could affect not just abusive transactions but also straightforward tax management.”Proposals to introduce a new advisory panel have also drawn criticism. The panel would give fast, non-binding opinions to HMRC and taxpayers about whether the Gaar should be invoked.John Overs, head of corporate tax at law firm Berwin Leighton Paisner, told the Financial Times that the concept was “constitutionally unsound”. He said, “How much tax is due should ultimately be decided by parliament, whose intention is interpreted by the courts, not by HMRC and a group of unelected and unaccountable professionals who may have a professional interest in the matters they are asked to consider."

http://www.50percenttax.co.uk/index/2012/9/18/concerns-over-uk-tax-avoidance-rules.html