UK Proposed Tax Reporting Requirements Risk Flood of Disclosures

The UK’s proposal to expand tax reporting requirements for wealthy individuals is subjective and fails to target aggressive tax arrangements, tax practitioners say.

The proposal’s criterion for reporting tax positions with “uncertain legal interpretations” would lead them to detail routine tax positions and raise compliance burdens, they said.

Under current policy, large businesses are required to notify His Majesty’s Revenue and Customs if they take a tax position that may not align with the tax authority’s interpretation of the law. In March, HMRC proposed extending the policy to wealthy individuals if their legal interpretation of tax law results in a ...