CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Scottish Law Society Questions GAAR Proposals

Scottish Law Society Questions GAAR Proposals

by Amanda Banks, Tax-News.com, London

23 May 2014


The Law Society of Scotland has warned that proposals for a General Anti-Avoidance Rule (GAAR) on devolved taxes will require the Government to issue extensive guidance to ensure clarity. It has also called for an independent advisory panel to provide expertise on what would constitute tax avoidance under the rules, and to act as an arbiter.

The Revenue Scotland and Tax Powers Bill is currently before the Scottish Parliament. It provides for the establishment of Revenue Scotland (RS) as the tax authority responsible for collecting Scotland's Land and Buildings Transaction Tax and the Scottish Landfill Tax, as well as any other taxes which may be devolved or introduced in the future. This is expected to include Scottish personal income tax.

A UK-wide GAAR administered by HM Revenue and Customs (HMRC) was introduced last year. This included an advisory panel to review and approve HMRC guidance, and deliver opinions on individual cases referred to it by HMRC.

It is proposed that the Scottish GAAR should be more stringent than its UK kin. The Law Society of Scotland has however warned that the Scottish GAAR risks being overly broad, and has said RS should not be allowed to sit as "judge and jury" on its own decisions.

Isobel d'Inverno, who convenes the Law Society's Tax Law Committee, said that the Society supports the Bill's intention of preventing tax avoidance, but said that the GAAR could lead to taxpayer uncertainty. She added that the Society is pleased that the Scottish Parliament's Finance Committee has recommended that RS must consult widely on draft guidance before publication and before any substantive revisions are made.

TAGS: tax | tax avoidance | United Kingdom | tax authority | HM Revenue and Customs (HMRC) | tax reform | HM Revenue and Customs (HMRC)

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »