Avoidance

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Tax professionals’ views of the industry’s hottest topics

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)

Tax experts back department against PAC report

The impact of globalisation of tax, as seen from a PAC-led conference

A senior tax professional has raised concerns about an HMRC briefing that covers how the accelerated payments regime will be applied to tackling tax avoidance schemes.

Part two of the document explains that ‘pay upfront’ measures will be aimed at avoidance arrangements that include those already defeated in court.