Govt gets support for catch-all tax avoidance rule

Graham Aaronson QC, who prepared a report on the feasibility of a GAAR for the Treasury, said today the rule would deter abusive tax avoidance schemes without affecting genuine tax planning. A GAAR would enshrine in legislation the principle that though some tax efficiency schemes may be technically legal, they are not within the spirit of the legislation and so can be treated as avoidance. Aaronson also said a general rule would create a more level playing field for businesses, reduce legal uncertainties around tax avoidance schemes, and simplify the tax system. A GAAR should appl...