UK Tax Scheme Crackdown Rushed And Confusing, Say Accountants

by Robin Pilgrim, LawAndTax-News.com, London

05 August 2004

The UK government's launch earlier this week of a crackdown on tax avoidance schemes was rushed, and has left many of the country's businesses in some confusion as to what they must disclose to the Inland Revenue and when they must disclose it, according to accountants.

When Chancellor Gordon Brown first announced the crackdown in his March budget, the deadline for the disclosure of 'abusive' tax schemes launched after March 18 was the beginning of August. However, that date was then changed and changed again, ending at its current position in the autumn of this year.

Speaking to the Telegraph following the entry into force of the new rules, Mike Warburton of accounting firm Grant Thornton explained that:

"There is still a degree of confusion over what qualifies as a scheme. There will be a lot of suck-it-and-see to see how the regime will be applied."

He went on to add that:

"What they (the Inland Revenue) are after is a couple of dozen schemes they want shut down, and they are going to have to sift through thousands of submissions to do so."

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