Peter Vaines wonders whether HMRC's latest proposals go too far.
On 17 August HMRC published a consultation document entitled Strengthening tax avoidance: sanctions and deterrents which contains a number of proposals for deterring tax avoidance. The main thrust behind the proposals is the introduction of ‘penalties for enablers of tax avoidance which is defeated’.
HMRC explains that these proposals are targeting people who undertake transactions where tax is saved in a way in which Parliament did not intend. They propose charging penalties on everybody who enables others to avoid tax – such as promoters trustees and even lawyers who advise on the arrangements.
Without wanting to get too philosophical I am struggling a bit with the logic here.
If somebody enters into a transaction with the intention of saving tax and following a challenge by HMRC ...
