A round up of other news this week.
HMRC have published a commencement order triggering the start date for new powers already included in legislation (Finance Act 2016). The related HMRC Press Release highlights that this law will mean that from 1 January 2017 HMRC can for the first time charge civil penalties on individuals or corporates who take deliberate action to help others with offshore tax evasion or non-compliance.
The UK-Canada 2015 exchange of notes on arbitration, signed on 11 August 2015, entered into force on 21 December 2016 and takes effect in the UK and Canada from that date.
The new fiscal framework for the Welsh Government has been agreed between the UK and Welsh Governments, which sets out how the Welsh Government will be funded following the devolution of stamp duty land tax, landfill tax and Welsh rates of income tax.
In July 2015, the Court of Appeal in BT Pension Scheme v HM Revenue and Customs, the test case for the Foreign Income Dividend (FID) and Tax Credit Group Litigation referred the case to the Court of Justice of the European Union (CJEU). The substantive point of law on whether or not pension funds should have been able to recover dividend tax credits on FIDs was referred. The CJEU hearing took place on 9 November 2016 and the opinion of the Advocate General has now been issued. The Advocate General Opinion has recommended that the CJEU should conclude the denial of payable tax credits on FIDs was an unjustifiable breach of EU law. Please note the Advocate General Opinion is not binding on the CJEU however, is generally followed. This is a favourable development and we await the CJEU judgment.
KPMG in the UK’s recent analysis of UK stocks shows a divergence in performance between companies primarily focused on the UK market and those focused overseas.
Political uncertainty fuelled by Brexit, events in Europe and a new US President, mean retail growth in Britain will stagnate in 2017 according to the KPMG/Ipsos Retail Think Tank (RTT).