Chancellor creates 60% penalty for GAAR tax cases

HMRC introduces new measures to tackle tax avoidance

Carmen Reichman
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The Chancellor has introduced a new penalty equal to 60% of tax due for all cases successfully tackled by the General Anti-Abuse Rule (GAAR).

The GAAR was introduced in 2013 as part of the government's attempt to crack down on tax abuse. It applies to taxes such as income tax, capital gains tax, and inheritance tax and gives HMRC powers to claim money back from arrangements it deems abusive. GAAR takes priority over other parts of tax legislation and sits alongside several hundred targeted anti-avoidance rules (TAAR) which apply to particular tax provisions. The government will also introduce new measures for those who persistently enter into tax avoidance schemes that are defeated by HMRC. The measures include a spec...

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