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ANTI AVOIDANCE


Finance Act 2015 introduced a new tax on diverted profits from 1 April 2015 that has potentially wide application to both UK and non-UK business with activities in the UK. Ben Jones and Cathryn Vanderspar (Eversheds) provide an overview of this new tax and examine key points.
 

David Boneham (Deloitte) reviews a recent First-tier tribunal decision that uses FA 1996 s 84(1) – the ‘fairly represent’ loan relationship rule – as an anti-avoidance provision stopping accounting principles being used as a way of taking profits out of the tax net.

A survey conducted by Christian Aid suggests that a large majority of FTSE companies would not actively oppose the introduction of a legal requirement for them to make their country by country reports public, while some would actively support it.

The government is consulting until 23 October 2015 on the impact the current anti-money laundering and terrorist financing regime is having on business, and specifically the role of supervisors in that regime. See www.bit.ly/1PCnZ05.

Ross Munro (Harneys) interviewed by Jo Edwards for LexisNexis legal news analysis and LexisNexis®PSL tax.

Loan relationships and accounting standards

Tim Law (Engaged Consulting) takes a look at the consultation document on improving large business tax compliance, and the three proposed measures contained therein. 
 

HMRC is consulting until 14 October 2015 on detailed proposals for new measures against serial tax avoiders, including a further consultation on measures for serial avoiders, serial promoters, and how to introduce specific penalties where the general anti-abuse rule (GAAR) applies.

HMRC is publicising its victory before the First-tier Tribunal in Brain Disorders Research Limited Partnership v HMRC [2015] UKFTT 325 (reported in Tax Journal, 17 July 2015), which involved an ‘artificial tax avoidance scheme’.

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