Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, on tax avoidance, how many penalties were imposed under the General Anti-Abuse Rule regarding (a) income tax and (b) corporation tax in each in (i) 2016 and (ii) 2017.

The General Anti-Abuse Rule (GAAR) penalty applies to tax arrangements entered into on or after 15 September 2016. Before a GAAR penalty can be charged, HMRC must first enquire into tax returns once they are received and gather all relevant facts. For example, for income tax, arrangements to which a GAAR penalty may apply can first feature in tax returns in the year ended 5 April 2017, which must be filed with HMRC by 31 January 2018.

Whilst no penalties have been charged to date, HMRC is actively using the GAAR and in all cases referred to the GAAR Advisory Panel to date, the panel have agreed with HMRC, and been of the opinion that the cases should be pursued for GAAR counteraction. GAAR Panel decisions are published online at: https://www.gov.uk/government/collections/tax-avoidance-general-anti-abuse-rule-gaar