WHEN WILL IT BE ILLEGAL TO BE WITHIN THE LAW?
Maurice Duffy

Written by Maurice Duffy

The General Anti Tax-Avoidance Principle Bill is currently passing through the Commons. This Bill seeks to establish legislation that “any financial arrangements made by a company or individual should not have as their primary purpose the avoidance of tax”. This is a very delicate line to tread. We are not talking about the evasion of tax, the payment of which is required by law, but new legislation to establish a test to determine the primary purpose of a company’s financial arrangements. Surely such companies would merely adapt their functions accordingly. I can’t imagine how financial advisers would respond if it becomes illegal to have, as your primary purpose, the pursuit of legal tax arrangements.