17 September 2012

A General Anti-Abuse Rule (GAAR): consultation response

Mishcon de Reya's response to the Government consultation document: "A General Anti-Abuse Rule". The response covers our views and concerns in relation to:

  • The scope of the general anti-abuse rule (GAAR).
  • The lack of certainty offered by the GAAR.
  • The role of the GAAR Advisory Panel as a "taxpayer safeguard".
  • How HMRC will determine whether the obtaining of a tax advantage was the main purpose or one of the main purposes of arrangements entered into by the taxpayer.
  • Whether and how the GAAR will apply to existing tax avoidance strategies, particularly in relation to inheritance tax mitigation.
  • How the GAAR will interact with existing targeted anti-avoidance rules (TAARs) and other tax legislation.
  • The over-reliance on HMRC guidance which is not legally binding rather than providing clear legislation for the GAAR.
  • International double taxation arrangements which will be overridden by the proposed GAAR.

To read our full consultation response, please click below.