CIOT: Institute welcomes announcement of independent GAAR panel
The Chartered Institute of Taxation (CIOT) has welcomed today’s announcement by the Government that HM Revenue and Customs (HMRC) will not be represented on the Advisory Panel for the proposed general anti-abuse rule, which is due to be introduced next year. The CIOT has also welcomed the announcement that the Panel will have a permanent independent chair.
The CIOT and the Association of Taxation Technicians called for these safeguards in their joint response to the Government’s consultation on draft legislation on the GAAR in September.
CIOT President Patrick Stevens said:
“I welcome this announcement. The Advisory Panel on the General Anti Abuse Rule (GAAR) should be wholly independent, with no representatives of HMRC.
“This is all about making the GAAR work and reducing uncertainty for taxpayers, especially businesses. The Panel is a key feature of the operation of the GAAR. The Government has identified the panel’s purpose as being to help taxpayers and HMRC identify the borderline between acceptable planning on the one hand and egregious avoidance, where the GAAR applies, on the other hand. To achieve this we think it is necessary for the panel to be genuinely independent. The majority of panel members need to be those involved (or recently involved) in day to day commercial and tax transactions with no HMRC representatives. We are delighted that the Government agree.”
The CIOT is also arguing for the decisions of the Advisory Panel to be published. This is not addressed in today’s announcement.
Patrick Stevens said:
“There is a need for confidentiality in relation to individual taxpayers but decisions can be safely anonymised. Given the lack of any clearance system, the publication of advisory panel decisions, including dissenting opinions, is particularly necessary to assist taxpayers and their advisers. It is a key part of the process of making the GAAR work and, along with the Panel’s independence, can help avoid damaging uncertainty.”
Notes to editors
1. The CIOT/ATT response to the consultation on the draft GAAR legislation, and the Government’s consultation document, can be read at: http://www.tax.org.uk/tax-policy/public-submissions/2012/GAAR_CIOT_ATT
2. The Chartered Institute of Taxation
The Chartered Institute of Taxation (CIOT) is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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George Crozier
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The Chartered Institute of Taxation
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The Association of Taxation Technicians
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www.att.org.uk
Low Incomes Tax Reform Group – an initiative of the Chartered Institute of Taxation
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