Business News |
|
Tax Avoidance Study Group Launched
The government has made its first appointment to a group of experts who will explore the potential for a General Anti-Avoidance Rule (GAAR) as part of the UK tax regime.
Graham Aaronson QC was appointed in December to lead a study into whether a GAAR could be effective in the UK tax system and how it could be framed to deter and counter tax avoidance without reducing the UK tax regime’s attractiveness to business.
Details of further members of the study group will be announced this month and the group is due to complete its study by 31 October 2011. The government says it will not introduce a GAAR without further, formal public consultation.
Responding to the study group’s launch, the Chartered Institute of Taxation (CIOT) said it looked forward to having the opportunity to contribute to its work.
John Whiting, CIOT tax policy director said: “We are happy to examine the idea of a GAAR, although many of the underlying concerns that existed when this was looked at in 1999 remain.”
He added that if a GAAR was to be introduced, it should be part of a general reform of anti-avoidance law and not simply as an additional layer.
Countries that already have a GAAR include Canada, Hong Kong, South Africa, New Zealand and Australia.
LINK: CIOT press release
