Loan schemes ruled ‘abusive’ Loan schemes ruled ‘abusive’
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  1. #1

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    Default Loan schemes ruled ‘abusive’

    Andrew Robins explains why two recent GAAR rulings are important for users and promoters of loan schemes designed to be used by contractors and employees.

    What is GAAR?

    In July 2013, the government introduced a new ‘general anti-abuse rule’ (GAAR) to attack ‘abusive’ tax arrangements aiming to take advantage of loopholes in the tax law by, for example, inserting artificial steps into a commercial arrangement. The GAAR only applies to actions undertaken after its commencement.

    GAAR opinions

    The GAAR panel has published two rulings affecting arrangements concerning loans provided in place of salary, which were designed to get around the ‘disguised remuneration’ rules. In both cases, the taxpayer (tax not payer - AtW’s comment) lost

    Loan schemes ruled ‘abusive’ | AccountingWEB

    Oh dear - I thought loan schemes were legal?


  2. #2

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    Default

    Quote Originally Posted by AtW View Post
    Andrew Robins explains why two recent GAAR rulings are important for users and promoters of loan schemes designed to be used by contractors and employees.

    What is GAAR?

    In July 2013, the government introduced a new ‘general anti-abuse rule’ (GAAR) to attack ‘abusive’ tax arrangements aiming to take advantage of loopholes in the tax law by, for example, inserting artificial steps into a commercial arrangement. The GAAR only applies to actions undertaken after its commencement.

    GAAR opinions

    The GAAR panel has published two rulings affecting arrangements concerning loans provided in place of salary, which were designed to get around the ‘disguised remuneration’ rules. In both cases, the taxpayer (tax not payer - AtW’s comment) lost

    Loan schemes ruled ‘abusive’ | AccountingWEB

    Oh dear - I thought loan schemes were legal?

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  3. #3

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    HMRC were using APN's before that ruling. So HMRC are no better off.

    Everyone expected the loan schemes to be made illegal. Prospectively.....

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