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15 November 2013 / Peter Vaines
Issue: 7584 / Categories: Features , Tax , Commercial
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Taxing matters

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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 Legal Action Group (LAG)—the UK charity dedicated to advancing access to justice—has unveiled its calendar of training courses, seminars and conferences designed to support lawyers, advisers and other legal professionals in tackling key areas of public interest law
Refusing ADR is risky—but not always fatal. Writing in NLJ this week, Masood Ahmed and Sanjay Dave Singh of the University of Leicester analyse Assensus Ltd v Wirsol Energy Ltd: despite repeated invitations to mediate, the defendant stood firm, made a £100,000 Part 36 offer and was ultimately ‘wholly vindicated’ at trial
The Police and Criminal Evidence Act 1984 transformed criminal justice. Writing in NLJ this week, Ed Cape of UWE and Matthew Hardcastle and Sandra Paul of Kingsley Napley trace its ‘seismic impact’
Operational resilience is no longer optional. Writing in NLJ this week, Emma Radmore and Michael Lewis of Womble Bond Dickinson explain how UK regulators expect firms to identify ‘important business services’ that could cause ‘intolerable levels of harm’ if disrupted
As the drip-feed of Epstein disclosures fuels ‘collateral damage’, the rush to cry misconduct in public office may be premature. Writing in NLJ this week, David Locke of Hill Dickinson warns that the offence is no catch-all for political embarrassment. It demands a ‘grave departure’ from proper standards, an ‘abuse of the public’s trust’ and conduct ‘sufficiently serious to warrant criminal punishment’
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