Although the Government is right to take a robust approach towards tackling promoters and enablers of tax avoidance schemes who continue to devise, promote or sell avoidance schemes, the CIOT has two key concerns: the lack of a right of appeal, and the inclusion of ‘DAC 6’ within the definition of ‘defeated arrangements’ in the POTAS regime.
If the new tax checks on licence renewal applications operate effectively, it could help reduce the tax gap, and the CIOT is generally supportive. A post-implementation review should be carried out before extending to other taxes or jurisdictions.
The CIOT welcomes the decision not to take forward a number of proposals that had originally been put forward in HMRC’s consultation document Amending HMRC’s Civil Information Powers – particularly Option 1 (Aligning with Taxpayer Notice). However, Option 2 (Financial Information Notice) is being progressed and the CIOT has raised a number of questions as to how the new power will operate in practice.
The CIOT encourages the government to revisit its decision to introduce the requirement for certain businesses to notify uncertain tax treatments, for lack of clarity (the Government had recently announced that the proposal would be delayed until April 2022).
The CIOT also suggests that the proposed changes to information powers in the enablers of tax avoidance regime should apply from the date of Royal Assent to Finance Act 2021, rather than retrospectively from November 2017.
Although the Government is right to take a robust approach towards tackling promoters and enablers of tax avoidance schemes who continue to devise, promote or sell avoidance schemes, the CIOT has two key concerns: the lack of a right of appeal, and the inclusion of ‘DAC 6’ within the definition of ‘defeated arrangements’ in the POTAS regime.
If the new tax checks on licence renewal applications operate effectively, it could help reduce the tax gap, and the CIOT is generally supportive. A post-implementation review should be carried out before extending to other taxes or jurisdictions.
The CIOT welcomes the decision not to take forward a number of proposals that had originally been put forward in HMRC’s consultation document Amending HMRC’s Civil Information Powers – particularly Option 1 (Aligning with Taxpayer Notice). However, Option 2 (Financial Information Notice) is being progressed and the CIOT has raised a number of questions as to how the new power will operate in practice.
The CIOT encourages the government to revisit its decision to introduce the requirement for certain businesses to notify uncertain tax treatments, for lack of clarity (the Government had recently announced that the proposal would be delayed until April 2022).
The CIOT also suggests that the proposed changes to information powers in the enablers of tax avoidance regime should apply from the date of Royal Assent to Finance Act 2021, rather than retrospectively from November 2017.
