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GAAR panel member steps down after Panorama sting

GAAR panel member steps down after Panorama sting

A tax adviser belonging to GAAR panel has resigned from his position after he was recorded by Panorama programme of BBC outlining the many benefits of tax planning and ways to keep money safe from the Chancellor’s ‘grubby mitts’.

The Chancellor is reported to be extremely upset by David Heaton’s comments and has ordered strict disciplinary action. Heaton was recorded while describing a scheme called Bump Plan stating that 90% of payments made finally end up with employees.

BBC said that at the conference he explained that through deliberately planning the timing of bonuses that enable increased discount on maternity pay, the tax paid on bonus will fall from 41.8% to 8.4%.

David Gauke, Exchequer secretary to the Treasury pointed out that GAAR or The General Anti-Abuse Rule is designed to protect the taxpayers and the advisory panel has to ensure that GAAR is used whenever it is appropriate. He added that the statement of David Heaton is completely against government’s approach to tackle tax avoidance. He further pointed out that a member of the panel should never behave in this way as that can undermine GAAR as well as its effectiveness.

An HMRC spokesperson has confirmed the departure of Heaton and said that they are soon to announce the name of Heaton’s successor.