| The government has made
its first appointment to a group of
experts who will explore the potential for
a General Anti-Avoidance Rule (GAAR) as
part of the UK tax regime. Graham
Aaronson QC was appointed in December to
lead a study into whether a GAAR could be
effective in the UK tax system and how it
could be framed to deter and counter tax
avoidance without reducing the UK tax
regime’s attractiveness to business.
Details of further members of the study
group will be announced this month and the
group is due to complete its study by 31
October 2011. The government says it will
not introduce a GAAR without further,
formal public consultation.
Responding to the study group’s launch,
the Chartered Institute of Taxation (CIOT)
said it looked forward to having the
opportunity to contribute to its work.
John Whiting, CIOT tax policy director
said: “We are happy to examine the idea of
a GAAR, although many of the underlying
concerns that existed when this was looked
at in 1999 remain.”
He added that if a GAAR was to be
introduced, it should be part of a general
reform of anti-avoidance law and not
simply as an additional layer.
Countries that already have a GAAR
include Canada, Hong Kong, South Africa,
New Zealand and Australia.
LINK:
CIOT press release |
