A bad news for tax payers :The accelerated Payments Proposal
The controversial measure have now been approved and will become law in mid to July. By removing the cash flow advantages they are a part of a continuing drive by Hm Revenue & customs (HMRC) to deter people from entering into tax avoidance scheme.The finance (No2) bill 2014, which is due to receive Royal Assent in July, contains legislation which will enable HMRC to demand payment upfront of disputed tax in certain cases, principally involving tax avoidance or deferral. From Royal Assent, HMRC will have the power to issue accelerated payment notice, which will require payment of disputed amounts of tax to be made within 90 days.If matter has not been settled at the time the notice from HMRC will demand advance payment of tax.
The accelerated payment notice is applicable for most taxes including income tax, corporation tax, inheritance tax, capital gains tax etc. If anyone has entered into arrangements which give rise to a tax advantage the HMRC will able to issue an accelerated payment notice to that tax payer. It is also applicable when the tax advantage is the subject of an ongoing enquiry or appeal and an arrangement falling within the ‘Disclosure of Tax Avoidance Schemes’ (DOTAS) regime has been used/ the matter in dispute is, in HMRC’s view, sufficiently similar to a matter which has been decided by the Tribunal or courts in HMRC’s favour, or HMRC seeks to counteract a tax advantage by use of the General Anti-Abuse Rule (GAAR).
Follower notice is applies where a final decision in a tax case has been reached and HMRC considers that the decion in the judjment applies to other taxpayers so as to cancel a claimed tax advantage.