Budget 2010: Govt may resurrect "draconian" GAAR tax law

The rule would help close tax avoidance loopholes by giving HM Revenue & Customs (HMRC) more extensive and widely-drafted powers to judge tax liabilities. Capital gains tax (CGT), inheritance tax, corporation tax and income tax would all come under closer scrutiny under the rule. Proposals to "work with interested parties on the case" for developing a GAAR are hidden in emergency Budget discussion document ‘Tax policy making: a new approach'. It states the Government will "take a more strategic approach to the risk of avoidance to prevent increasing complexity and reduce the need f...