THE HUNDRED GROUP of finance directors has thrown its weight behind government consultations designed to scupper tax avoidance, it has emerged.
The influential group of the UK’s top FDs has backed the ‘lifting the lid on tax avoidance schemes’ (LLTAS) initiative, which would see current disclosure of tax avoidance schemes (DOTAS) facilities extended and included the proposal that the taxman can request client lists from firms and individuals suspected of providing abusive schemes.
It also expressed its support for the general anti-abuse rule (GAAR), which is likely to come into force in April next year. The GAAR is designed to gauge the ‘reasonableness’ of tax schemes – and stamp out those deemed as contrived.
In the LLTAS response, in a letter to HMRC, the group’s tax committee chairman Andrew Bonfield said “there should be a better public awareness of tax avoidance arrangements and their risks and believe there could be a case for revisions to the DOTAS hallmarks”.
In the group’s response to the GAAR consultation, it recommends the inclusion of the words “abnormal” and “contrived” in the definition of tax schemes falling within GAAR’s scope.
In responses to the two proposals, Bonfield said the body “agrees with the government’s stance on unacceptable tax avoidance and support the steps being taken, including the introduction of a GAAR”.
Bonfield, who has been chairman of the tax committee of the Hundred Group since 2010, is CFO of National Grid.
Ahead of Donald Trump’s inauguration, Nicholas Hallam explores the president-elect’s approach to VAT and tax policy
Messenger start-up Snap, owner of Snapchat, has said it will set up its non-US headquarters in London
An aggressive pro-business president-elect looms - but in 'protecting' the US will he damage others? Economics expert David Kern give his latest views on the global economy
Public Accounts Committee believes country-by-country reporting will help HMRC check if multinationals are paying the right tax - but laments that the information will remain between those parties