Ernst & Young Budget reaction: GAAR GAAR?
Chris Sanger, head of tax policy at Ernst & Young comments on how the General Anti Avoidance Rule (GAAR) will impact businesses:
“Whilst confirmation that the implementation of a General Anti Avoidance Rule (GAAR) may not come as a surprise, how this will be achieved will continue to be a cause for concern. The future consultation will need to clearly set out the government’s proposed approach and avoid introducing significant uncertainty into the tax regime.
“Businesses will be closely watching any draft legislation to see whether the proposals have the potential to develop and expand in scope, beyond Aaronson’s original intent.
“This remains a delicate area, where the Government needs to be wary of introducing uncertainty that could undermine the UK’s competitiveness.”