The draft anti-avoidance rule being considered by the government does not allay concerns over uncertainty and may disappoint public opinion, according to the Chartered Institute of Taxation.
The tax avoidance question is ‘critical’, particularly in the current economic situation, but the subject should be kept in perspective, a Treasury minister said yesterday after a Labour peer warned that a ‘socially useless tax avoidance industry’ could harm the performance of the economy.
An anti-tax abuse rule would make the tax code simpler – not more complex – the Prime Minister said yesterday.
Helen Lethaby provides your monthly update.
A tax avoidance scheme involving post-cessation trade relief under Income Tax Act 2007 s 96, which provides relief for certain payments made or events occurring after a trade has ceased, is to be blocked with effect from 12 January.
HMRC has published FAQs on employment income provided through third parties. The NIC rules came into force on 6 December 2011 and are not retrospective, HMRC said.
Consultation on the introduction of a general anti-avoidance rule appears likely to feature in the Budget on 21 March, after David Cameron backed Nick Clegg’s call for tougher action to ensure that large companies pay their ‘fair share’ of tax.