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Criminal Finances Bill

Global Tax Update:February 2017/United Kingdom

The Criminal Finances Bill inter alia creates offences for cases where a person associated with a company or partnership facilitates the commission by another person of a tax evasion offence, and contains measures to create new offences of failure to prevent facilitation of tax evasion. (Global Tax Update:February 2017/United Kingdom)

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This newsletter explains the following topics; 

1. Criminal Finances Bill

The Criminal Finances Bill inter alia creates offences for cases where a person associated with a company or partnership facilitates the commission by another person of a tax evasion offence, and contains measures to create new offences of failure to prevent facilitation of tax evasion. Amendments tabled to date include New Clause 6 on public registers of beneficial ownership of companies registered in the Overseas Territories, which has cross-party support. See http://deloi.tt/2ly2Wnk

2. Draft legislation including on corporate interest restriction, relief for carried-forward losses

As promised when the bulk of the draft legislation for Finance Bill 2017 was published on 5 December 2016, HMRC have now published further draft legislation. This includes expanded versions of the draft legislation on carried-forward corporation tax losses (see http://deloi.tt/2kwXvYG) and on interest limitation (see http://deloi.tt/2k4ZvXk).

3. VAT grouping: consultation document published

As announced at Autumn Statement 2016, a consultation on VAT grouping ran until 27 February 2017. The purpose of the consultation is to inform UK policy following last year’s decisions of the Court of Justice of the European Union (CJEU) in Larentia & Minerva and Marenave (C-108/14) and C-109/14) and Skandia America Corporation (C-7/13).

4. Italy: Application of Skandia principles

The Italian tax authorities have recently issued a ruling that the CJEU’s decision in the case of Skandia America Corporation should be applied to supplies from a company in a non-Italian VAT group to its Italian branch. The ruling itself concerned a UK VAT group with a branch of one of the grouped companies in Italy and is binding only on the parties subject to the ruling.

 

>> Click for Japanese [犯罪財政法案(Criminal Finances Bill)] 

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