Commenting on the controversial measures to tackle mass marketed avoidance that are going through Parliament, Jason Collins writes that affected taxpayers need to consider their options, including any grounds for challenge.
Rarely do government proposals generate so much adverse comment and intense lobbying from the tax and legal professions. The Finance Bill proposals require ‘accelerated payment’ of the tax in dispute in avoidance cases. They will also impose a penalty if a taxpayer litigates and loses a case after receiving a ‘follower notice’ in which HMRC opines the issue has already been determined by other litigation. This has been described as ‘unconstitutional’ and as having the effect of making HMRC ‘judge and jury’.
The proposals will apply where there is an open enquiry or tax appeal in relation to ‘tax arrangements’ – namely where...
