Budget Summary 2014 - page 15

ANTI-AVOIDANCE & COMPLIANCE MEASURES
Tax avoidance schemes
Users of tax schemes that fall within the DOTAS regime or are
counteracted under the general anti-abuse rule (GAAR) will have to
make upfront payment of any disputed tax. HMRC will be able to
issue a notice to the user of a tax avoidance scheme that they
should settle their dispute with HMRC when the claimed tax effect
has been defeated in other litigation. Failure to do so will risk a
penalty and a requirement to pay the tax in dispute.
The government will consult on the DOTAS regime, including
refining the existing hallmarks, introducing new hallmarks and
strengthening the penalties for non-disclosure. HMRC will be given
new powers to tackle non-cooperative promoters of tax avoidance
schemes, backed by large financial penalties.
The government is consulting further on measures to deter the use
of charities established for tax avoidance purposes.
Dual contracts
High-earning non-domiciled individuals will be prevented from
avoiding tax by artificially dividing the duties of one employment
between the UK and overseas. There will be no tax on either dual
contracts that are not motivated by tax avoidance or on directors
who have less than a 5% shareholding in their employer.
Direct recovery of debts
HMRC’s powers to recover tax and tax credits directly from debtors’
bank and building society accounts, including ISAs, will be
modernised and strengthened. Implementation will be subject to
consultation.
Self-service time to pay
A new online system will enable people in financial difficulty to set
up a payment plan for self-assessed income tax.
BUDGET
19 MARCH 2014
page 15
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