The Government has announced that it will appoint an interim advisory group to oversee the development of guidance on the new General Anti-Abuse Rule (GAAR).
The GAAR is being introduced to deter and counter abusive tax avoidance, while providing certainty, retaining a tax regime that is attractive to businesses, and minimising costs for taxpayers and HMRC.
In the last budget, the Government announced that a GAAR Advisory Panel would be established to give opinions on specific cases and to approve HMRC guidance on the new rule. HMRC will shortly begin the process of advertising for and appointing a Chair of the Advisory Panel, who will then advise HMRC on appointing the other panel members.
This process will not be complete until early next year. Until this time, an interim group of panel members led by Graham Aaronson QC will oversee the development of the new guidance, after it is published for public consultation in December.
Exchequer Secretary to the Treasury, David Gauke said:
"HMRC already has a strong set of weapons to tackle tax avoidance, and the GAAR will be a valuable additional tool in tackling artificial and abusive avoidance schemes. But we are also clear that it must address such schemes without creating uncertainty for business investment. I am pleased that Graham Aaronson will bring to bear the expertise that he and his colleagues have already brought to the GAAR Study Group Report to ensure that HMRC’s guidance is of practical use to all taxpayers."
Contact Jeffrey Lewis or Siobhain Egan for advice on these issues.
