Tax avoidance is legitimate in itself but must not be allowed to endanger the public finances, says a new Treasury Committee report.
The tax avoidance disclosure regime introduced in the 2004 Budget is working well, the committee said in yesterday's report on the December 2004 pre-budget report.
The intention of the regime was that tax authorities receiving early notice of schemes could form a relatively quick view as to how to respond, the report said.
It added: "The response could be to note the development but to take no action, or to announce that action will be taken to legislate against the scheme; if it was judged appropriate, it might be indicated that the proposed legislation would take effect from the date of the announcement. In practice, a number of such announcements were made wi...