Uncertain predictions
Key points
- Consultation on differing legal interpretations in tax.
- Proposed uncertain tax treatment regime would apply to large businesses.
- The tax gap suggests that smaller businesses are responsible for much of the tax gap.
- More of HMRC’s resources should be targeted at supporting smaller businesses rather than large ones.
- Do HMRC’s manuals stand up to legal scrutiny?
In March HMRC launched a consultation Notification of uncertain tax treatment by large businesses with a view to addressing the £6.2bn (18%) attributed to ‘legal Interpretation’ by HMRC’s estimate of the tax gap (tinyurl.com/ycc8y5my). In essence it seeks to require large businesses to notify HMRC when they have adopted an uncertain tax treatment. It will apply to large businesses – corporates limited liability partnerships and partnerships – which are defined as those which satisfy either or both of:
- a turnover above £200m; or
- a balance sheet total over £2bn....
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.