GAAR: new proposals for a General Anti-Avoidance rule
Graham Aaronson QC has reported on the possibilities of introducing a General Anti-Avoidance Rule (GAAR) in to the UK's tax code. This would apply to tax as well as NICs.
More of an anti-abuse rule than just anti-avoidance, a GAAR would tackle abnormal or artificial arrangements of the kind that would be intended to achieve an abusive tax result. HMRC would be able to counteract any advantages.
The idea being that once a GAAR was established much of the current specific anti-avoidance legislation could be repealed (work for the OTS).
Links: Graham Aaronson QC GAAR Study
