On August 17, 2016 the UK Government issued a consultation document regarding the Strengthening of Tax Avoidance Sanctions and Deterrents. The UK government seeks views on proposals for sanctions against those who enable or use tax avoidance arrangements which are later defeated and regarding proposed changes to the existing penalty legislation which applies to those who use avoidance which is defeated. The consultation runs from August 17, 2016 to October 12, 2016. Responses can either be sent by e-mail or by normal mail.
The consultation document describes the subject of the consultation as follows: “Proposals for sanctions for those who design, market or facilitate the use of tax avoidance arrangements which are defeated by HMRC and to change the way the existing penalty regime works for those whose tax returns are found to be inaccurate as a result of using such arrangements.”
In the document it is furthermore stated that the HMRC welcomes meetings with interested parties to discuss these proposals.
After giving a short introduction, the consultation document discusses a.o. the following subjects:
· Penalties for enablers of tax avoidance which is defeated
o Who is an enabler of tax avoidance?
§ Definition models
o Penalties for those who enable tax avoidance which HMRC defeats
o Safeguards
o The way forward
· Penalties for those who use tax avoidance which is defeated
o Careless behaviour penalties where avoidance is defeated
o Strengthening penalties for inaccuracies resulting from defeated avoidance
§ Describing what does not constitute taking reasonable care
§ Placing the requirement to prove reasonable care onto the taxpayer
o The way forward
o Safeguards
· What is defeated tax avoidance?
· Further ways to discourage avoidance
o The avoidance ‘lifecycle’
o Influencing decisions
Click here to be forwarded to the consultation document regarding the Strengthening of Tax Avoidance Sanctions and Deterrents as issued by the UK Government on August 17, 2016.
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