GAAR & Enabler Penalties
Offering legal representation to clients facing tax investigations and/or 60% penalties for selling or using tax schemes now defeated under the General Anti Abuse Rule.
The General Anti Abuse Rule applies to many forms of tax avoidance arrangements and can be used by HMRC to impose 60%v penalty charges on any taxpayer who uses tax avoidance schemes that HMRC regard as unreasonable and where the taxpayer does not concede when challenged.
If you have used a tax avoidance scheme at any point, or if you have sold or facilitated such a scheme, and HMRC have raised the possibility that the GAAR applies it is important to seek expert legal advice at the earliest opportunity.
At Cannon Chambers, we have detailed experience of handling GAAR challenges by HMRC, both for enablers and victims of the schemes.
With our in-depth knowledge of HMRC’s mechanisms and the complexities of financial legislation, we offer clear and practical advice, seek beneficial mitigation, counter HMRC charges and investigations and successfully represent clients in tax tribunals.
To find out more about GAAR penalties and to instruct a barrister, contact Cannon Chambers here.
Are you liable for a GAAR penalty?
Any taxpayer who has entered into a tax avoidance arrangement is potentially liable for a 60% GAAR penalty.
If you have received a proposed counteraction notice from HMRC, you have 30 days to take corrective action to prevent the matter from being referred to the GAAR Advisory Panel. Once it is with the Advisory Panel, there is no chance of avoiding a penalty of 60% if HMRC are ultimately successful.
It is however possible to defend your position, even if you miss the 30-day deadline.
How Can Cannon Chambers Help?
At Cannon Chambers, we have specialist knowledge in the field of tax avoidance schemes, and are best placed to advise on and manage all correspondence with HMRC, as well as offering trusted representation in tax tribunals and the courts.
Contact Cannon Chambers here for clear, helpful and commercially astute legal services in all tax avoidance cases.
Other Areas Cannon Chambers Can Offer Advice:
Frequently Asked Questions
The penalty is equal to the total amount of consideration received or receivable by an enabler for the defeated tax avoidance arrangements. Consideration paid to anyone else can also be included.
Enabler penalties impose a penalty charge on advisers when tax avoidance arrangements they have enabled are defeated under the GAAR.