Despite yet another setback in the adoption of the EU pillar two directive, there is no rest in the horizon for EU’s tax policies. As the Commission and the Council reflect on ways forward on minimum taxation, there is much more to look forward to: renewed prospect of a EU digital tax initiative, possible initiative to circumvent Council’s unanimity rule on tax policies, a proposal to tackle tax enablers, exchanging information on crypto-assets, and adapting VAT rules for the digital age.
The fallout from failed tax saving arrangements using employee benefit trusts (EBTs) continues. In Hunt v Richard Balfour-Lynn (and others) [2022] EWHC 784 (Ch), directors who in reliance on tax advice from a firm of accountants, arranged for a company to use an EBT, were found not in breach of duty. The decision whilst of comfort to directors, increases the likelihood of recovery actions following failed tax saving schemes shifting back on the accountancy firm tax advisers.
What the draft UK implementing legislation tells us.
Perhaps inevitably, there are some modifications to the new regime.
In the summary of responses to its consultation on Helping taxpayers get offshore tax right, the government has proposed innovative ways to assist taxpayers to identify and declare their non-UK income and assets.