
HM Revenue & Customs has opened its consultation on the General Anti-Abuse Rule proposed by Graham Aaronson, QC.
The consultation period is set to last until 14 September 2012.
Points of interest in relation to HMRC's proposals:
-
It will be for HMRC to prove that the GAAR applies
- HMRC will have to show that there are "tax arrangements", and
- Those "tax arrangements" are "abusive"
- The civil standard of proof will apply
- The GAAR may effectively 'over-ride' UK DTAs insofar as UK tax obligations are concerned: the benefits of a Double Tax Convention may be withheld to prevent an abuse of its provisions
- A formal statutory clearance process should not be required (in other words will not be provided)
- There should be an Advisory Panel with input from outside of HMRC but its decisions will not be binding on HMRC (for instance, if the Advisory Panel thinks that there is no abuse, HMRC will still be able to take a case forwards to tribunal).
The condoc can be found at A General Anti-Abuse Rule
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