Tulip Siddiq – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Tulip Siddiq on 2016-01-06.

To ask Mr Chancellor of the Exchequer, how many courts cases HM Revenue and Customs has initiated for tax abuse under the General Anti-Abuse Rule since its introduction; and how many people or companies found to have committed tax abuse under this Rule have been charged penalties.

Mr David Gauke

The General Anti-Abuse Rule (GAAR) was introduced in July 2013, and only applies to abusive tax arrangements entered into from this date.

This means that it will first apply to income tax returns for the tax year ending 5 April 2014, which must have been filed with HM Revenue and Customs (HMRC) by 31 January 2015. For corporation tax, returns are based on a company’s accounting period so, for example, returns for accounting periods ending 30 September 2013 have to be submitted to HMRC by the end of September 2014.

For cases to be tackled by the GAAR, HMRC must first enquire into tax returns once they are received, and gather all relevant facts. It is therefore early in the process of litigation action for cases to be tackled by the GAAR.

Nonetheless, the Government is committed to continually deterring the persistent minority from engaging in tax avoidance. As announced at Autumn Statement 2015, a penalty of 60% of the tax due for all cases tackled by the GAAR will be introduced in Finance Bill 2016.