It is likely, with the tide of public opinion on its side, that the Treasury will push these measures through, coming so soon after the revelations last month that high profile celebrities, such as the oft-named Jimmy Carr, have been using these types of structure.
At the time of these revelations International Adviser asked whether or not the wider industry, not just those responsible for creating the type of aggressive scheme which attracts the roaming eye of HMRC, should play a part in ensuring that schemes are on the right side of the moral line.
While this is of course a subjective “line”, and therefore hard to pinpoint, I would suggest most people would probably concur that reducing an income tax bill to near 1%, as with the now closed K2 scheme in Jersey, is well beyond it.
In this vein, would it not be prudent for the industry to start to take responsibility itself for routing out those who time and time again push the boundaries beyond acceptable standards, whether or not schemes are legal?
While assisting HMRC through the soon-to-be beefed-up Disclosure of Tax Avoidance Schemes rules, may not sit comfortably with all, it could be argued that the wider industry would benefit from a cleaner image.
Another by-product of the announcement today, and therefore, arguably, the actions of those who have caused it to happen, is that the UK government has, possibly unintentionally, sent out a far from positive message to entrepreneurs and businessmen either based in or looking to base themselves in the UK. Clearly not an enviable move at this juncture.
Perhaps this is tenuous, but maybe a more proactive, healthy tax management industry could help the UK to pull itself back out of recession, and not just in underhand ways.
What do you think? Can the tax industry use the consultation published by the government today for positive change?
Tell us in the comment box below…
