TAXline News: August 2018
Frank Haskew, Head of the Tax Faculty, reports on recent developments at the Tax Faculty during August 2018.
The draft clauses for Finance Bill 2018-19, which will become Finance Act 2019, were published on 6 July. If you have any comments you would like us to consider including in our representations, please send them to Ian Young before the end of August.
We published our responses to HMRC’s consultations on Tax avoidance involving profit fragmentation and Tax abuse and insolvency. In our responses, we noted that HMRC should already have a number of ‘tools in the box’ to tackle the types of behaviours highlighted. On the Tax abuse and insolvency consultation, we said that before any decisions are made about seeking new powers HMRC should provide more evidence about the scale of the perceived problems. In particular, the possible measures discussed, for example joint and several liability and/or transfer of tax debts, are potentially penal in nature and it is important that any measures are properly targeted and do not catch insolvencies where no abuse was intended.