Experts doubt impact of new GAAR legislation
A new general anti-abuse rule (GAAR) will probably reduce extreme forms of tax avoidance but critics say that the legislation may be hard to apply and won’t deal with the controversial tax arrangements of big business.
Although there is broad support for GAAR among tax professionals there are concerns about whether the new body can remain independent from the taxman.
Partners at Big Four accountancy firms have been excluded from the final GAAR “advisory panel”, which will advise HMRC about whether an avoidance scheme falls foul of the GAAR, in order to avoid the perception of a “conflict of interest”, according to a person familiar with the recruitment process.
Politicians have recently accused Big Four firms of...
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- Abusive arrangements
- Tax deterrent
- Out of court