Out-Law News 1 min. read

Government appoints interim advisers on GAAR


The Government has appointed an interim group of advisers to oversee the development of guidance on tax avoidance ahead of the appointment of a permanent advisory chair in January. 

Graham Aaronson QC will chair an interim advisory group to monitor the progress of HM Revenue and Customs (HMRC) guidance on a new General Anti-Abuse Rule (GAAR).

The GAAR was announced in the Government's last budget. A GAAR Advisory Panel will give opinions on specific cases and approve HMRC guidance on its operation, a Treasury statement said.

The chair of that Advisory Panel will not be appointed until January, so the Government has appointed an interim group to advise on the guidance when it is published for consultation in December.

The permanent chair will join the interim group in January and will then advise HMRC on who the other panel members should be, the Treasury statement said. HMRC will not be represented on the panel.

The Government has already published consultation on GAAR and its response to consultation submissions will be published in December, along with draft legislation and draft guidance.

“The GAAR will be a valuable additional tool in tackling artificial and abusive avoidance schemes," said Exchequer Secretary to the Treasury David Gauke. "But we are also clear that it must address such schemes without creating uncertainty for business investment."

A tax expert said that the credibility of any advisers will depend on whether they are truly independent of those who have put schemes in place in the past to avoid tax.

"The composition of the panel will be key to making the GAAR work," said Jason Collins of Pinsent Masons, the law firm behind Out-Law.com. "It's important that it includes truly independent people, perhaps a retired judge, and that the members do not come just from advisory firms who have structured avoidance schemes in the past. The panel must be seen to be independent as well as operate independently."

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