Labour’s 17-point tax avoidance clampdown plan
By Mark Battersby, 15 May 17
As voting day for the UK general election rapidly approaches, the Labour party has spelled out a wide-ranging 17-point plan to tackle tax avoidance and public filing of the tax returns of wealthy individuals earning more than £1m.
A General Anti-Avoidance Rule.
The government currently has what it calls a General Anti-Avoidance Rule (GAAR). This is inadequate as it does not challenge the abuses already established.
It requires HMRC to seek permission from a business advisory panel before taking any legal action to stamp out abuses. Unsurprisingly, so far no action has been taken to deal with abuses.
Labour will instead introduce a GAAR designed to end sham transactions. Any transaction lacking economic substance will be considered to be a sham and thus not allowed for tax purposes.
Oversight and guidance will be provided by a broader panel of experts.
Tags: Tax Avoidance
