Many of you will already have been pleased to hear that I have been appointed as a representative of the interim panel for the general anti abuse rule.
As such I will be making my views known as to the abusive nature of activities including paying an arms length price on intra group transactions to reduce your tax liability and giving money to your wife for her to put in an ISA.
Both of these are clearly alegal.
However, I do not expect the GAAR to be effectively employed due to the presence of individuals who have been vocally opposed to the GAAR. Why on earth would you appoint such people to implement something they have no desire to see succeed?
Let me give you an example of areas where I expect these rightwing saboteurs to undermine the GAAR.
When a company decides the appropriate amount to pay a fellow group company, they are abusive in assuming that an arms length amount is intended by Parliament to reduce their tax liability.
Parliament only intends arms length adjustments to increase tax liabilities. Transfer pricing is intended to be anti avoidance legislation, so using it to reduce your liabilities is just sophistry.
Having somebody on the panel who thinks that the law should apply its principles equally, completely overlooking the rightful revenues they might deprive the State of, defeats the purpose of any anti abuse or anti avoidance rule.
You might be tempted to accuse them of deliberate sabotage. And you’d be right to do so.
Come on, Mr Cameron, why are such politically motivated individuals being allowed to determine what is reasonable with regards to tax avoidance?
I think it is a deliberate attempt by the Government to derail the GAAR and keep tax avoidance available for their Eton chums.