Avoidance

Revenue addresses evasion controversy

HMRC have published updated guidance on the general anti-abuse rule (GAAR), effective from 30 January 2015.

The new information replaces the 15 April 2013 version and includes documents setting out the changes, with updated links and statutory references and corrections to typographical. Substantial alterations include:

Audit office praises department’s approach to recommendations

Tax professionals’ views of the industry’s hottest topics

Availability of relief for a mortgage early redemption penalty

A new consultation from HMRC looks at how to deter taxpayers using what the department considers to be abusive tax planning schemes.

The document, Strengthening Sanctions for Tax Avoidance, suggests removing the economic benefit of avoidance, and increasing the reporting requirements of those who enter into legal tax-dodging arrangements.

Project Blue Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)

Charities have been issued with stern government guidance on the right way to take advantage of tax breaks.

The Charity Commission’s document explains that reasonable use of fiscal reliefs and tax planning is necessary and sensible, but urges trustees to have regard to their duty to act prudently in the best interests of their charity and not enter into arrangements that could damage the reputation of the organisation.

Mass-marketed avoidance schemes look to be on the way out

Fidex Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)

So-called pay-day-by-pay-day (PDPD) provisions continue to be used by low-paid agency workers to obtain tax relief for travel costs, despite HMRC deeming such schemes non-compliant, according to the Low Income Tax Reform Group (LITRG).

Biffa (Jersey) Ltd (TC4094)