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Written question asked by Richard Shepherd (Conservative) on Friday, 13 March 2015, in the House of Commons. It was due for an answer on Wednesday, 18 March 2015 (named day). It was answered by David Gauke (Conservative) on Thursday, 19 March 2015 on behalf of the Treasury.

Tax Avoidance

Question

To ask Mr Chancellor of the Exchequer, what representations were made to the Government on the constitutional propriety of the General Anti-Avoidance Rule introduced by the Finance Act 2013 (a) in relation to whether the Rule seeks to make citizens responsible for shortcomings of the legislative process, (b) in relation to whether the Rule requires the courts to give effect to interpretations offered by an advisory body which is unaccountable and unelected and (c) on any other grounds.

Answer

The Government launched its consultation on a General Anti-Abuse Rule (GAAR) on 12 June 2012. A significant number of responses were received from a wide range of respondents. HM Revenue & Customs (HMRC) published a summary of responses on 11 December 2012 noting that the majority of respondents were broadly in favour of an anti-abuse rule, though there were concerns that the draft legislation had the potential to apply more widely than the stated target.

The role and composition of the GAAR Advisory Panel was an important element of the consultation. The response document notes that, “most respondents welcomed the introduction of the Advisory Panel as a taxpayer safeguard. There was support for the view that it should be a non-judicial body that would consider a case before it progresses to a court or tribunal.”

In addition to the thorough consultation and following the publication of the provisions on GAAR in December 2012, the House of Lords Economic Affairs Committee considered the Government’s proposals for an anti-abuse rule, as part of their enquiry into selected provisions of the draft Finance Bill. The Committee considered representations from a range of sources. The majority of those who made comments or gave evidence were also broadly in support of the new rule. The Committee’s report is available here: http://www.publications.parliament.uk/pa/ld201213/ldselect/ldeconaf/139/13906.htm

The consultation and the summary of responses is available at:

http://webarchive.nationalarchives.gov.uk/*/http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_032453

Secondary information

Type
Written question
Reference
227513
Session
2014-15
Transferred
Yes
Subjects
Tax avoidance
Legislation
Finance Act 2013
Link
View this Written question on www.parliament.uk