Interim advisory group to oversee tax avoidance rule creation

An interim advisory group will look at overseeing the development of a new General Anti-Abuse Rule (GAAR), designed to curb tax avoidance across the UK.

The government believes that the new ruling will help to keep the right balance between a tax system that eradicates tax avoidance, and one that is attractive to businesses.

It is hoped that the process will be finished early next year, but in the meantime all parties are being encouraged to give their opinions on GAAR, with a full response document set to be published in December.

Exchequer Secretary to the Treasury, David Gauke, explained that GAAR will act as an additional tool for HM Revenue and Customs.

"But we are also clear that it must address such schemes without creating uncertainty for business investment," he added.

It comes after Prime Minister David Cameron said last month that all companies must contribute their share of Corporate Tax, while saying he wasn't happy with the current situation with tax avoidance.

Posted by Thomas Fletcher

Date published 7 Nov 2012 | Last updated 7 Nov 2012