On 24 February 2014, HMRC published a consultation document entitled “Tackling marketed tax avoidance”, although this confusingly overlapped with the related consultation “Raising the stakes on tax avoidance”, for which the summary response document was published simultaneously. On 27 March 2014, the response document for the former consultation was published.
The “Tackling marketed tax avoidance consultation” set out, amongst other things, the Government’s legislative proposals to require taxpayers who have participated in certain tax planning to pay the tax in dispute to HMRC prior to the determination of any such dispute by an independent tribunal/court. The proposals relate to arrangements which have been “judicially defeated”, and to strategies that have been disclosed under the DOTAS regime, or those that are subject to the GAAR.
Within the window of one month, the consultation generated 847 responses, although HMRC states that around 400 of these were from a campaign website.
The Government intends to take the proposals forward, with relatively modest amendments.
For the consultation documents click here.