David Whiscombe (BKL) reviews the first GAAR Panel decision in favour of the taxpayer and argues that the underlying legislation is long overdue for repeal.
Since its establishment under FA 2013 the GAAR Advisory Panel has issued nearly two dozen opinions. Until recently it had upheld in every case the view that the undertaking of the arrangements referred to them was not a reasonable course of action.
The first case in which the Panel sided with the taxpayer and opined that the entering into and carrying out of the arrangements was a reasonable course of action is one involving the repayment of a loan made by a close company to a participator having the intended effect of avoiding the charge to tax under CTA 2010 s 455 that would otherwise arise.
The facts in the case are refreshingly simple.
On the last day of its accounting period ended...
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David Whiscombe (BKL) reviews the first GAAR Panel decision in favour of the taxpayer and argues that the underlying legislation is long overdue for repeal.
Since its establishment under FA 2013 the GAAR Advisory Panel has issued nearly two dozen opinions. Until recently it had upheld in every case the view that the undertaking of the arrangements referred to them was not a reasonable course of action.
The first case in which the Panel sided with the taxpayer and opined that the entering into and carrying out of the arrangements was a reasonable course of action is one involving the repayment of a loan made by a close company to a participator having the intended effect of avoiding the charge to tax under CTA 2010 s 455 that would otherwise arise.
The facts in the case are refreshingly simple.
On the last day of its accounting period ended...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
