The GAAR Advisory Panel has recently published an opinion that covers unauthorised payment from registered pension scheme involving debt arrangement. The GAAR panel is clear in its opinion that entering into or carrying out these types of tax arrangements is not a reasonable course of action in relation to the relevant tax provisions.

The General Anti-Abuse Rule (GAAR) came into force in July 2013 as part of the Governments multi-pronged attack to tackle artificial and abusive tax avoidance arrangements. The GAAR aims to target tax abusive arrangements without damaging the overall competitiveness of the UK as a place to do business.

The GAAR applies to Corporation Tax (and amounts treated as Corporation Tax), Income Tax, Capital Gains Tax, Petroleum Revenue Tax, Diverted Profits Tax, apprenticeship levy, Inheritance Tax, Stamp Duty Land Tax, the Annual Tax on Enveloped Dwellings and National Insurance Contributions.

An independent Advisory Panel is in place to give opinions on specific cases and approve HMRC's GAAR guidance. The Advisory Panel provides guidance to HMRC and taxpayers on procedures for referred cases.

Source: New feed