A LIST OF the most “aggressive and contrived” tax avoidance schemes will be published today as part of a series of proposals by the Taxman.
Their publication by HM Revenue & Customs will require taxpayers who use such schemes to pay the tax bill upfront or face a bigger bill after an investigation if the scheme is shown to be invalid, the Financial Times reports.
This will be aimed at stopping investors from getting cash flow benefits from using schemes that are bound to fail. The Revenue believes that, as the situation stands, the taxpayers are being provided with a cheap loan from government.
David Gauke (pictured), exchequer secretary to the Treasury, said: “These are highly aggressive and artificial tax avoidance schemes which we want to stop. For too long, wealthy taxpayers were using these schemes as a cheap loan from government.
“Our proposals would stop this practice, reducing the cost of HMRC’s interventions and ensuring a fairer tax system.”
According to the FT, HMRC has also asked a leading barrister to consider if a general anti-avoidance rule would counter avoidance effectively.
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