HMRC publishes a range of factsheets that can be issued to taxpayers during a compliance check. The General anti-abuse rule and notices of binding CC/FS37 factsheet concerns the penalties HMRC can charge if you have been given a notice of binding and a bound arrangements opinion notice under the general anti-abuse rule (GAAR). The factsheet has recently been updated following amendments to the GAAR legislation.

The GAAR aims to target certain tax abusive arrangements and 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.

The notice of binding will:

• specify the tax arrangements in relation to which the notice is given and the tax advantage
• explain why HMRC consider that your arrangements are equivalent to the counteracted arrangements
• explain why HMRC consider that a tax advantage has arisen to you from the arrangements that are abusive
• set out the counteraction that HMRC consider ought to be taken
• explain the effect of certain statutory provisions

The factsheet also includes sections on taking corrective action, notice of final decision, provisional counteraction notices and penalties under the GAAR.

Source: New feed