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In the UK, for example, you have to register any tax avoidance scheme that you're using (as an individual at least). If the HMRC then look into that tax scheme
by mattmanser 9y ago
In the UK, for example, you have to register any tax avoidance scheme that you're using (as an individual at least).
If the HMRC then look into that tax scheme and deem it against the rules, you pay the tax, but without penalty.
As I understand it, if you don't register the scheme and you are found to be using the previously grey-area avoidance scheme, then you get done for tax evasion.
That's how it's supposed to work at least, but companies seem to get sweetheart deals in these circumstances.
- daxelrod 9y agoI'm super curious about how this works in practice. What's the bar something has to meet before being reported? Do decisions made about how to do accounting count? How about decisions when filling out tax forms? (US example: itemizing deductions vs taking the standard deduction).
- mattmanser 9y agohttps://www.gov.uk/guidance/tax-avoidance-an-introduction https://www.gov.uk/guidance/tax-avoidance-an-introduction