Budget 2013: GAAR a 'deterrent', with £235m haul estimate
The GAAR won't bring in billions of pounds, but it is already working as a deterrent, says Bill Dodwell
CREATING a general anti-avoidance rule to act as a deterrent, rather than creating a mass caseload to deal with, seems to be borne out by the latest Budget figures.
The general anti-abuse rule, which will come into force this summer, will see a £235m haul between 2104 and 2018. But its impact on deterring avoidance, while no doubt higher, is impossible to quantify, according to Deloitte tax policy head Bill Dodwell.
“You can’t work out an absolute saving, for a deterrent,” said Dodwell.
Its enactment into law through the 2013 Finance Bill intends to clamp down on tax schemes that are abusive yet difficult to specifically legislate against.
An advisory panel, which includes Dodwell, has been put together to review schemes and determine whether they are contrived. The panel does not include HMRC representation.