Corporate Tax Risk and Tax Avoidance: New Approaches

British Tax Review, Vol. 1, pp. 74-116, 2009

Oxford Legal Studies Research Paper No. 13/2009

44 Pages Posted: 16 Apr 2009 Last revised: 23 Apr 2009

See all articles by Judith Freedman

Judith Freedman

University of Oxford - Faculty of Law; Oxford University Centre for Business Taxation

Geoffrey Loomer

University of Victoria - Faculty of Law; Oxford University Centre for Business Taxation

John Vella

Oxford University Centre for Business Taxation; University of Oxford - Faculty of Law

Date Written: April 1, 2009

Abstract

The relationship between tax authorities and large corporate taxpayers is a concern world-wide as can be seen from the 2008 OECD Study into the Role of Tax Intermediaries. In the United Kingdom, HMRC have been developing a risk rating approach to tax risk management as part of their Review of Links with Large Business. The approach is designed to promote an enhanced relationship between HMRC and the taxpayer, based on trust and transparency. The objectives include the improvement of resource allocation and the encouragement of companies to consider their position so as to achieve the benefits of low risk rating, which may involve altering their tax planning strategy. In addition, new approaches to tax avoidance legislation such as targeted anti-avoidance rules and principles-based legislation are being introduced or considered. This article discusses a survey of tax directors in which the authors used detailed tax planning scenarios to investigate the views of tax directors on the impact and success or otherwise of these new approaches. The views of tax directors are only one factor in judging the success of these developments, but given that one aim of current tax policy is an enhanced relationship with corporate taxpayers, directors’ views are significant in assessing the progress being made. The article analyses these views and comments on these new approaches to tax risk management.

Suggested Citation

Freedman, Judith and Loomer, Geoffrey and Vella, John, Corporate Tax Risk and Tax Avoidance: New Approaches (April 1, 2009). British Tax Review, Vol. 1, pp. 74-116, 2009; Oxford Legal Studies Research Paper No. 13/2009. Available at SSRN: https://ssrn.com/abstract=1385042

Judith Freedman (Contact Author)

University of Oxford - Faculty of Law ( email )

Worcester College
Walton Street
Oxford, Oxfordshire OX1 2HB
Great Britain

Oxford University Centre for Business Taxation ( email )

Worcester College
Oxford, Oxfordshire OX1 2HB
United Kingdom

Geoffrey Loomer

University of Victoria - Faculty of Law ( email )

PO Box 2300, STN CSC
McGill at Ring Rds (Fraser Bldg)
Victoria, British Columbia V8W 3B1
Canada
2507218173 (Phone)

HOME PAGE: http://https://www.uvic.ca/law/facultystaff/facultydirectory/index.php

Oxford University Centre for Business Taxation ( email )

Park End Street
Oxford, Oxfordshire OX1 1HP
United Kingdom
44-1865-288790 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/faculty-research/tax

John Vella

Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/john-vella

University of Oxford - Faculty of Law ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://www.law.ox.ac.uk/profile/john.vella

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