The Government has asked Graham Aaronson, a tax barrister specialising in commercial taxation, to lead a study into a general anti-avoidance rule. In the meantime a number of specific anti-avoidance measures have been announced, some with immediate effect.
A competitive corporate tax system is not just about rates, the Treasury said as it launched five consultations.
The top 15 banks operating in the UK have now adopted the Code of Practice on Taxation for Banks, the Chancellor announced. ‘Alongside the Bank Levy, this shows that the Coalition Government is taking action to ensure banks pay their fair share,’ George Osborne said.
‘Many banks, particularly US institutions, had been reluctant to sign up to an extra-statutory code [the Code of Practice on Taxation for Banks] because of uncertainty over its implications,’ the Financial Times reported (30 November).
The Government has estimated that there are 190 open HMRC enquiries under the controlled foreign companies legislation, said Mark Hoban in a Commons written answer.
The Government supports the work of the OECD's task force on tax and development which is examining the issue of country-by-country reporting, business minister Edward Davey said in a Commons written answer.
The Treasury announced five consultations on 29 November dealing with controlled foreign companies, taxation of foreign profits, profits arising from patents and R&D tax credits:
Anneli Collins on findings from a recent survey of businesses on their tax priorities
The Treasury Committee has launched an inquiry into the principles which should underpin the UK tax policy, a fortnight after the Office for Tax Simplification revealed that the system has more than 1,000 reliefs.
Calls for a new accounting standard requiring country by country reporting reflect a lack of public trust in corporate behaviour, PwC said as it revealed that Vodafone had been ‘highly commended’ for transparency in tax reporting.