HMRC has published a summary of more than 840 responses received to its consultation Tackling marketed tax avoidance, which closed on 24 February 2014. The consultation set out proposals, including draft legislation, to implement the Autumn Statement announcement that accelerated payments of tax would be required from taxpayers involved in avoidance disputes where a ‘follower notice’ has been issued. It also included proposals to extend accelerated payment to taxpayers involved in avoidance schemes that are within DOTAS, or where HMRC is undertaking counteraction under the GAAR.
The measures, which are now contained in Finance Bill 2014, have met with a critical reaction from many advisers. CIOT president Stephen Coleclough said that it was one thing to demand upfront payments from follower cases, but allowing HMRC ‘to act as prosecutor, judge and jury’ on DOTAS ‘goes too far’. In last week’s Tax Journal, the exchequer secretary to the Treasury, David Gauke, responded: ‘[Those affected] will still have full recourse to the court system and the government is not changing anyone’s tax liability, or the role of judges in finally determining the amount of tax due. We are simply requiring the users of tax avoidance schemes to pay now and dispute later, in the way the majority of taxpayers must.’
HMRC’s summary of responses to the consultation points out that a significant number of responses acknowledged the underlying policy issue and agreed with the government that the behaviour that underpins avoidance schemes needs to be addressed, although there was disagreement about the approach to take. The summary also addresses the concern voiced by many that the proposals are retrospective because they apply to disputes already in progress at the time that the legislation will pass into law, particularly in relation to schemes disclosed under DOTAS. The summary explains that the government does not agree that the proposals are retrospective, as they do not change the underlying tax liability.
HMRC has published a summary of more than 840 responses received to its consultation Tackling marketed tax avoidance, which closed on 24 February 2014. The consultation set out proposals, including draft legislation, to implement the Autumn Statement announcement that accelerated payments of tax would be required from taxpayers involved in avoidance disputes where a ‘follower notice’ has been issued. It also included proposals to extend accelerated payment to taxpayers involved in avoidance schemes that are within DOTAS, or where HMRC is undertaking counteraction under the GAAR.
The measures, which are now contained in Finance Bill 2014, have met with a critical reaction from many advisers. CIOT president Stephen Coleclough said that it was one thing to demand upfront payments from follower cases, but allowing HMRC ‘to act as prosecutor, judge and jury’ on DOTAS ‘goes too far’. In last week’s Tax Journal, the exchequer secretary to the Treasury, David Gauke, responded: ‘[Those affected] will still have full recourse to the court system and the government is not changing anyone’s tax liability, or the role of judges in finally determining the amount of tax due. We are simply requiring the users of tax avoidance schemes to pay now and dispute later, in the way the majority of taxpayers must.’
HMRC’s summary of responses to the consultation points out that a significant number of responses acknowledged the underlying policy issue and agreed with the government that the behaviour that underpins avoidance schemes needs to be addressed, although there was disagreement about the approach to take. The summary also addresses the concern voiced by many that the proposals are retrospective because they apply to disputes already in progress at the time that the legislation will pass into law, particularly in relation to schemes disclosed under DOTAS. The summary explains that the government does not agree that the proposals are retrospective, as they do not change the underlying tax liability.
