The government has confirmed that an avoidance scheme designed to accelerate first year allowances is to be blocked with effect from 12 August 2011.
The government has abandoned a consultation – due to close in less than a fortnight – on proposed measures to counter tax avoidance ‘exploiting’ double tax treaties.
Corporate loss carry-forwards are now as high as 25% of GDP in some countries, according to the OECD.
HMRC are to publish an update to last month’s ‘tax treaties anti-avoidance’ consultation in the light of concerns raised by business and tax advisers.
Draft regulations creating a charge to national insurance contributions on amounts chargeable to income tax under the disguised remuneration rules have been published for comment.
ITEPA 2003 Part 7A (employment income provided through third parties) was inserted by FA 2011.
New schemes that purport to avoid tax and NICs and ‘get around’ the new disguised remuneration rules will be challenged, HMRC said in a new ‘Spotlights’ item.
More than 200 pages of draft guidance on the ‘disguised remuneration’ rules in FA 2011 were published last week. HMRC said the draft was not being published as part of a formal consultation process, but any urgent comments may be emailed to HMRC by 2 September.
A measure to prevent the acceleration of first year allowances will take effect from 12 August 2011 or earlier, rather than next April, because of evidence that the delay could result in the loss of ‘significant revenue’.
Wealthy businessmen who engage in large-scale legal tax avoidance face ethical questions just as much as do young looters, a leading political journalist has claimed.
HMRC are seeking views on draft legislation, earmarked for Finance Bill 2012, to counter tax avoidance schemes exploiting double taxation agreements.