TaxPersonal TaxTreasury ends double taxation consultation

Treasury ends double taxation consultation

Proposals to tackle double taxation avoidance schemes are deemed unworkable

A CONSULTATION on combating tax avoidance arrangements that exploit double taxation arrangements has been cancelled because of the uncertainty the proposals will make for UK compliant businesses.

Responses to the consultation, which was released on 1 August, have made it clear that its intended scope and effect will create significant uncertainty.

Double tax treaties provide investors with assurance that they will not be taxed in two countries. Instead of the proposals, which set out a wide ranging strategy, the government will instead tackle avoidance by challenging specific tax avoidance strategies, Exchequer secretary to the Treasury David Gauke (pictured) announced last week.

Chris Sanger, head of tax policy at Ernst & Young, said that the government’s decision to end the consultation should be welcomed and prove that ministers are committed to transparency. This decision would be “greeted with a sigh of relief”, he added.

“Had the government’s proposals gone ahead, UK competitiveness would have been eroded. It would have hit commercial transactions by restricting access to funding markets and hiked up the costs of investing into the UK,” Sanger said.

“The Coalition pledged to take a more consultative approach to tax policy making and, from this volte face, they seem to be living up to their mantra,” he added.

 

Related Articles

Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

3m Alia Shoaib, Reporter
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

4m Alia Shoaib, Reporter
Colin: Tell them about the money, mummy

Business Regulation Colin: Tell them about the money, mummy

1y Taking Stock
HMRC collects £3bn through accelerated payment notices

Personal Tax HMRC collects £3bn through accelerated payment notices

1y Richard Crump, Writer
Government presses ahead with non-dom tax changes

Personal Tax Government presses ahead with non-dom tax changes

1y Richard Crump, Writer
Capital gains tax jumps 24.6% as south-east house prices tick up

Governance Capital gains tax jumps 24.6% as south-east house prices tick up

1y Stephanie Wix, Writer
Friday Afternoon Live: Making Tax Digital; CIMA prez's new role; tax conduct guidance

Corporate Tax Friday Afternoon Live: Making Tax Digital; CIMA prez's new role; tax conduct guidance

1y Kevin Reed, Writer
Investors sue Ingenious Media over tax losses

Legal Investors sue Ingenious Media over tax losses

1y Richard Crump, Writer