HMRC has issued factsheet CC/FS34: Compliance checks: general anti-abuse rule and provisional counteraction notices, which explains the new powers, introduced by Finance Act 2016, to issue provisional counteraction notices and penalties for abusive tax arrangements entered into on or after 15 September 2016.
A provisional counteraction notice sets out the adjustments that HMRC believes may be needed under the GAAR to counteract a tax advantage arising from tax arrangements. Such adjustments are referred to as ‘notified adjustments’. Giving a provisional counteraction notice allows HMRC to make the notified adjustments before all the GAAR procedures have been completed.
The new rules also introduce the concepts of ‘pooling’, ‘binding’ and ‘generic referrals’, where HMRC applies opinions obtained from the GAAR Advisory Panel to users of equivalent arrangements.
HMRC has issued factsheet CC/FS34: Compliance checks: general anti-abuse rule and provisional counteraction notices, which explains the new powers, introduced by Finance Act 2016, to issue provisional counteraction notices and penalties for abusive tax arrangements entered into on or after 15 September 2016.
A provisional counteraction notice sets out the adjustments that HMRC believes may be needed under the GAAR to counteract a tax advantage arising from tax arrangements. Such adjustments are referred to as ‘notified adjustments’. Giving a provisional counteraction notice allows HMRC to make the notified adjustments before all the GAAR procedures have been completed.
The new rules also introduce the concepts of ‘pooling’, ‘binding’ and ‘generic referrals’, where HMRC applies opinions obtained from the GAAR Advisory Panel to users of equivalent arrangements.
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