Institute Issues Tax Avoidance Guidelines
The Institute of Chartered Accountants in England and Wales (ICAEW) has given its members new advice about “aggressive” tax avoidance schemes, including a reminder about an ethical code for tax advice.
It is published as the government plans a general anti-abuse rule (GAAR) to help it tackle aggressive tax avoidance.
The disclosure of tax avoidance schemes (DOTAS) consultation is due to run until 15 October, while the consultation on the proposals for a GAAR closes on 14 September.
In addition, exchequer secretary David Gauke has also recently announced Government proposals to crack down on the promoters of contrived and aggressive tax avoidance schemes.
The minister unveiled plans to increase the pressure on advisers who market abusive schemes that artificially and aggressively reduce tax and to make it easier for taxpayers to identify such schemes.
Contractors should note however, that although the GAAR concept will be taken forward in due course, it is not expected to be used to target, for example, the simple issue of deciding to work through a company.