Accountancy Age has reported that the Budget should raise £1.7 billion form anti avoidance measures, most aimed at companies. This, of course, is welcome, but we've a long way to go in thta case.
One of the really welcome changes has been the attack on partnerships and trust avoidance in controlled foreign companies. as the Age notes:
The rules announced in the Budget will hit CFCs with voting shares held in off-shore trusts and prevent corporates from structuring CFCs as partnerships. The moves are expected to net £400m for the government by 2010.
Let's be clear. These arrangements are wholly artificial, wholly non tax compliant and are abusive attempts to save tax by the use of tax havens. So what did Bill Dodwell, head of tax policy at Deloitte have to say:
The CFC crackdown was particularly surprising. The structures that have been blocked are widely used and the changes are very unhelpful
Unhelpful?
Is stopping anti-social behaviour unhelpful, Bill? I don't think so. And I don't think you could justify it.
If you can, debate it with me.
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