TaxCorporate TaxGAAR to be in Budget, Clegg indicates

GAAR to be in Budget, Clegg indicates

David Cameron says government will be tougher on tax avoidance

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”.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

3m Alia Shoaib, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

9m Shereen Ali, Deputy Editor