In our previous blog post, we mentioned about the key points from the Autumn Statement 2015. Now, here, we are going to outline the tax avoidance and evasion measures that were declared in the Autumn Statement.

Tax scheme promoters
A set of measures will be introduced to monitor the persistent users who enter into the tax avoidance schemes. The government is also widening the Promoters of Tax Avoidance Schemes (POTAS) regime that monitors promoters of them.

The measures include a special reporting requirement and a surcharge on those who have wrong tax return as a result of using a defeated scheme, the public naming and shaming of the avoiders who persistently abuse certain tax reliefs and limiting access to such reliefs for some time.

New civil penalties for offshore tax evaders
From 2016, new and increased civil penalties will be introduced for deliberate offshore tax evaders and those enabling such evasion. It will include a new penalty linked to the value of the asset on which tax evasion took place and increased public naming and shaming of the tax evaders and as well as the who have enabled evasion.

A new criminal offence for tax evasion
A new criminal offence will be introduced for removing the need to prove intent for the most serious cases which fail to declare offshore income and gains.

General Anti-Abuse Rule (GAAR)
The government will introduce a new penalty of 60% of the tax due to be charged in all the successful cases dealt by the General Anti-Abuse Rule (GAAR). Small changes will be made in the procedure of the GAAR for improving its ability to control the marketed avoidance schemes.

A new criminal offence for corporates

A new criminal offence will be introduced for corporate who fail to stop their agents from criminally assisting tax evasion either by an individual or entity.

Action for disguised remuneration
Those who have used or continue using disguised remuneration schemes and do not pay their fair share of tax will face a serious action.

Partnerships and transfers of intangible assets
The government will amend the intangible fixed assets regime which is used to obtain more corporation tax relief than is intended by the legislation. This regime will prevent the arrangements using partnerships for obtaining unplanned tax relief.