Revenue slams door on two more tax loopholes
Two more tax avoidance loopholes have been slammed shut by the Inland Revenue providing further evidence of the governments determination to clampdown on tax avoiders.
Paymaster general, Dawn Primarolo, said the government would ‘not tolerate’ the efforts of the tax avoidance industry to ‘undermine the will of parliament’.
‘We are determined to stamp out abusive tax avoidance and create a level playing field for all,’ she said.
The first change will prevent companies avoiding corporation tax through using manufactured payments and will apply where the arrangements have an ‘unallowable purpose’.
The second change arose because the Revenue was ‘alerted’ to a scheme designed to negate the effect of legislation where businesses sell rental streams from leased plant or machinery for a sum that is not brought into charge as income.