Since 2010 there have been 42 changes to tax law to close loop holes and deter tax avoidance.
Key changes were Accelerated Payments and High Risk Promoter Rules.
There is new consultation document out now ‘Strengthening sanctions for tax avoidance’ which runs till 12th March 2015.
A serial avoider may:
- Use a number of tax avoidance schemes each year that were intended to offset their tax liability several times over in the hope that at least one will work.
- Repeatedly use tax avoidance schemes to shelter the same type of income year after year.
- Repeatedly use avoidance schemes to cover the majority of income or gains as they arise.
- Often use tax avoidance schemes to cover major life or commercial events.
The new sanctions are expected to include:
- Surcharges on repeated or concurrent use of tax avoidance schemes
- Being compelled to provide more documents and records
- Stop notices
- Name and shame
Will this end the use of tax avoidance schemes?