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Taxing matters

15 November 2013 / Peter Vaines
Issue: 7584 / Categories: Features , Tax , Commercial
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Peter Vaines navigates the stormy waters of tax

The Finance Act 2013 came into force on 17 July and with it a number of new provisions. One of the most important is the general anti abuse rule (GAAR) which applies to tax arrangements taking place after that date.

GAAR

Where arrangements are entered into with a main purpose of obtaining a tax advantage, they will be regarded as abusive (and therefore subject to counteraction) if they “cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions”.

I may not be the first person to observe that the term “abusive” is therefore being defined as unreasonable, which many may feel is not the same thing at all.

You therefore need to consider whether what you are doing is intended to exploit any shortcomings in the legislation and whether it involves any contrived or abnormal steps. You also have to consider what policy objectives should be implied by the legislation. I don’t know how the ordinary taxpayer

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NEWS
The government’s plan to introduce a Single Professional Services Supervisor could erode vital legal-sector expertise, warns Mark Evans, president of the Law Society of England and Wales, in NLJ this week
Writing in NLJ this week, Jonathan Fisher KC of Red Lion Chambers argues that the ‘failure to prevent’ model of corporate criminal responsibility—covering bribery, tax evasion, and fraud—should be embraced, not resisted
Professor Graham Zellick KC argues in NLJ this week that, despite Buckingham Palace’s statement stripping Andrew Mountbatten Windsor of his styles, titles and honours, he remains legally a duke
Writing in NLJ this week, Sophie Ashcroft and Miranda Joseph of Stevens & Bolton dissect the Privy Council’s landmark ruling in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2), which abolishes the long-standing 'shareholder rule'
In NLJ this week, Sailesh Mehta and Theo Burges of Red Lion Chambers examine the government’s first-ever 'Afghan leak' super-injunction—used to block reporting of data exposing Afghans who aided UK forces and over 100 British officials. Unlike celebrity privacy cases, this injunction centred on national security. Its use, the authors argue, signals the rise of a vast new body of national security law spanning civil, criminal, and media domains
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