Tax avoidance proposals for double taxation agreements droppedSaturday, September 17th, 2011
The Government has decided not to proceed with proposals to counter continuing exploitation of the provisions of DTAs.
In August 2011, HMRC published a technical note and draft regulations that set out a proposed approach to combating tax avoidance arrangements which exploit the provisions of double taxation agreements (DTAs). Comments were sought by a deadline date of 22 September.
However, in a Ministerial Statement, HM Treasury has announced that the responses received so far have made it clear that the proposed legislation, as drafted, could cause significant uncertainty for compliant UK businesses and overseas investors about its intended scope and its practical effect.
The Government has therefore decided not to proceed further with the consultation on the proposed legislation and will not include it in Finance Bill 2012.