A GENERAL anti-avoidance rule is likely to be included in the 2012 Budget, the Prime Minister and Deputy PM have indicated
In an interview with the BBC, Deputy Prime Minister Nick Clegg (pictured) did not confirm there would be a GAAR in the Budget, but said: “We have received a report from an expert, Graham Aaronson, which says an anti-abuse rule is feasible. I very much hope…[that] we can make progress on that in the Budget.”
David Cameron said in a speech at the Intuit headquarters in Maidenhead that HM Revenue & Customs had to collect the money in a “fair and business-friendly manner”. However, he said a tough approach is needed: “With the large companies, that have the fancy corporate lawyers and the rest of it, I think we need a tougher approach.”
The government will continue to cut the rate of corporation tax, and businesses should recognise they “should pay that rate of tax rather than try to avoid it”.
Clegg also attacked the “wealthy elite” who paid “an army of accountants” to avoid taxes.
Owen Smith, the shadow Exchequer secretary to the Treasury, said that the GAAR proposals were “narrowly focussed”.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
MTD cost estimates are not based on 'facts', and are 'disbelieved' by most small businesses and sole traders, says Lords committee chairman