HMRC clarifies General Anti-Abuse Rule (GAAR) guidance
HMRC has updated the five-part General Anti-Abuse Rule (GAAR) guidance to make certain clarifications, including details about the inclusion of national insurance contributions (NICs) within the rules, and procedural amendments, including the liabililties of taxpayers when dealing with GAAR advisory panel requests for information say Harris & Co accountants Northampton.
The five-part, 191-page guidance documents includes procedural and case studies illustration potential use of the GAAR.
The key changes to the guidance include:
A statement saying, ‘In practice, HMRC expect[s] to argue GAAR where it is appropriate to do so, at the same time as arguing other technical challenges that may be available as alternatives’ (para B6.1);
Updated commentary relating to the extension of GAAR to cover National Insurance Contributions from 13 March 2014 following the enactment of the National Insurance Contributions Act 2014 (paras B 9.2 and E 6.12);
Clarification that the content of a notice by HMRC to a taxpayer of proposed counteraction of tax advantage ‘will take into account the information the advisory panel has indicated they will require from HMRC as set out in the advisory panel’s guidance on procedures for dealing with referred cases’ and that the notice will be accompanied with a copy of the advisory panel’s guidance.
It also clarifies that HMRC and the taxpayer should provide the advisory panel with the information set out in their guidance as the panel "is not a fact-finding body’ (paras E3.3.2 and E3.5.5)
In addition, the guidance has also been updated to include effective dates, links to external documents and links to examples in other parts of the guidance.
HMRC also states that ‘just because something isn’t covered by the GAAR doesn’t mean it won’t be tackled in another way. HMRC will continue to tackle tax avoidance using existing anti avoidance methods as well as the GAAR, where appropriate’.
The GAAR applies to the following taxes from 17 July 2013:
Corporation tax (including amounts chargeable or treated as corporation tax);
Capital gains tax;
Petroleum revenue tax;
Stamp duty land tax (SDLT); and
Annual tax on enveloped dwellings (ATED).
The GAAR applies to NICs from March 2014.
The five-part guidance is available at https://www.gov.uk/government/publications/tax-avoidance-general-anti-abuse-rules
source Accountancy Live
source Accountancy Live