One minute with Anton Lane, owner and managing partner of Edge Tax.
What caught your eye in the draft Finance Bill?
It has to be the new counter avoidance measures and particularly the new criminal offence for offshore tax evaders. Consider this in the light of HMRC’s increased prosecution target, the exchange of information with overseas territories and the fact that offshore tax structuring sits within the most complicated and disputed area of tax law. The outcome is likely to be quite shocking. I think many people may be caught by the new offence, yet believe that they have been wholly legitimate in their tax planning.
What sets Edge Tax apart from other firms?
We are commercial and approachable, technically excellent and a fun firm to work with. Of course, other firms may hold these attributes too. So the one thing that probably sets us aside is our sense of humour, which far too often includes political satire!
You are a tax investigations specialist. What big developments should we be looking out for in 2016?
HMRC has been unpredictable and the profession is probably unsure of what the future holds. Many would not have fully expected or appreciated the vast increase in information powers, the attack on avoidance, the accelerated payment notices and the willingness of the courts to accept political pressure (allegedly). The industry is in shock over what HMRC considers unacceptable tax planning.
In my view, the momentum, which is both politically and globally driven, will not stop and taxpayers can envisage difficult battles for success at the courts and judicial review. Also, now the deadline has passed for registration under the offshore disclosure facilities, I am sure HMRC will be keen to demonstrate its ability to attack those with offshore interests. I think there are going to be a few years of big surprises for those who believe they have legitimate offshore structures.
The general anti-abuse rule (GAAR) made the headlines when it was introduced. In your experience, has HMRC raised the prospect of applying the GAAR in practice?
We have seen inspectors raise the question of how the GAAR might apply within their negotiations, rather than its use as an actual weapon – it’s all been a bit too quiet on the GAAR front, in my view. Maybe the GAAR will be a big development for 2016.
I find HMRC’s tactical threat of the GAAR interesting, because it is often forgotten that the GAAR could result in the unwinding of planning for tax purposes. The GAAR could be advantageous on some occasions; for example, if HMRC is contending PAYE is due but the GAAR might result in s 455 being due instead, this could have advantages for the taxpayer.
Looking back on your career to date, what key lesson have you learned?
First, formalise internal risk procedures and hold risk committee meetings to include discussions on intermediaries, potential clients and clients. Record risks and decide whether you want to work with or act for people. Second, be able to look at situations, including technical arguments, from different perspectives. Often, people’s views are tainted by their own beliefs or wishes, which can impair their judgement. Being able to ascertain other viewpoints enables you to plan and think through solutions or counter arguments.
Aside from your immediate colleagues, who in tax do you most admire?
I have a high regard for Giles Goodfellow QC. He is thorough, conscientious and practical in his application of tax law.
Tell us a secret.
I practice Krav Maga, which is a martial art developed for the Israeli special forces. It’s amazing how many tax technical problems get resolved in my head whilst facing an opponent.
One minute with Anton Lane, owner and managing partner of Edge Tax.
What caught your eye in the draft Finance Bill?
It has to be the new counter avoidance measures and particularly the new criminal offence for offshore tax evaders. Consider this in the light of HMRC’s increased prosecution target, the exchange of information with overseas territories and the fact that offshore tax structuring sits within the most complicated and disputed area of tax law. The outcome is likely to be quite shocking. I think many people may be caught by the new offence, yet believe that they have been wholly legitimate in their tax planning.
What sets Edge Tax apart from other firms?
We are commercial and approachable, technically excellent and a fun firm to work with. Of course, other firms may hold these attributes too. So the one thing that probably sets us aside is our sense of humour, which far too often includes political satire!
You are a tax investigations specialist. What big developments should we be looking out for in 2016?
HMRC has been unpredictable and the profession is probably unsure of what the future holds. Many would not have fully expected or appreciated the vast increase in information powers, the attack on avoidance, the accelerated payment notices and the willingness of the courts to accept political pressure (allegedly). The industry is in shock over what HMRC considers unacceptable tax planning.
In my view, the momentum, which is both politically and globally driven, will not stop and taxpayers can envisage difficult battles for success at the courts and judicial review. Also, now the deadline has passed for registration under the offshore disclosure facilities, I am sure HMRC will be keen to demonstrate its ability to attack those with offshore interests. I think there are going to be a few years of big surprises for those who believe they have legitimate offshore structures.
The general anti-abuse rule (GAAR) made the headlines when it was introduced. In your experience, has HMRC raised the prospect of applying the GAAR in practice?
We have seen inspectors raise the question of how the GAAR might apply within their negotiations, rather than its use as an actual weapon – it’s all been a bit too quiet on the GAAR front, in my view. Maybe the GAAR will be a big development for 2016.
I find HMRC’s tactical threat of the GAAR interesting, because it is often forgotten that the GAAR could result in the unwinding of planning for tax purposes. The GAAR could be advantageous on some occasions; for example, if HMRC is contending PAYE is due but the GAAR might result in s 455 being due instead, this could have advantages for the taxpayer.
Looking back on your career to date, what key lesson have you learned?
First, formalise internal risk procedures and hold risk committee meetings to include discussions on intermediaries, potential clients and clients. Record risks and decide whether you want to work with or act for people. Second, be able to look at situations, including technical arguments, from different perspectives. Often, people’s views are tainted by their own beliefs or wishes, which can impair their judgement. Being able to ascertain other viewpoints enables you to plan and think through solutions or counter arguments.
Aside from your immediate colleagues, who in tax do you most admire?
I have a high regard for Giles Goodfellow QC. He is thorough, conscientious and practical in his application of tax law.
Tell us a secret.
I practice Krav Maga, which is a martial art developed for the Israeli special forces. It’s amazing how many tax technical problems get resolved in my head whilst facing an opponent.
