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1. Remit and procedures

Introduction

The Anti-Avoidance Board (AAB) is part of the HMRC governance framework for decisions in resolving tax disputes.

The HMRC Code of Governance requires cross-HMRC decision-making bodies to make decisions about our approach to resolving major disputed points arising, or expected to arise, in multiple cases.

For major tax avoidance issues the AAB has been authorised by the Commissioners for Revenue and Customs to:

• decide HMRC鈥檚 strategy for handling all avoidance issues

• agree an approach for resolving such issues in accordance with the Litigation and Settlement Strategy

Operational principles of the AAB

The following principles underpin the operation of the AAB:

• HMRC should have strong processes, proportionate to risk, which provide assurance that decision-making in respect of avoidance issues is robust and even-handed, in accordance with the Litigation and Settlement Strategy
• decisions on avoidance issues will be subject to challenge and scrutiny by representatives from multiple areas of HMRC
• HMRC鈥檚 tax professionals should be able to understand and consistently apply its governance processes, including how governance bodies fit with their own roles in taking decisions in tax disputes
• HMRC鈥檚 governance processes should be proportionate, effective and efficient, and should not adversely impact operational delivery and customer experience

The remit of the AAB

1. The AAB will ensure that avoidance issues are handled in a co-ordinated and consistent manner across HMRC.

2. The AAB will oversee handling strategies decided by policy owners for newly identified avoidance risks.

3. The AAB will take referrals for resolution of avoidance issues from issue owners. The issue owner will normally be the policy owner or the case team.

4. Subject to Paragraph 7, the AAB will decide the strategy for settling the avoidance issue submitted by the issue owner.

5. Where an avoidance issue is present in a case which is also within the remit of the CCG DRB or any other case governance body in a line of business, any proposals to resolve the specific dispute in that case must still be referred to that body, subject to any exception process in place. Decisions of the CCG DRB and other case governance bodies will take account of the strategy the AAB has agreed.

6. Any decision of the AAB in relation to agreeing a handling strategy for an avoidance issue needs to be made unanimously by panel members in attendance at the relevant meeting. Where the AAB cannot reach a decision it may, where appropriate, request that further work is undertaken by the issue owners or refer the issue to the Commissioners.

7. The Chair of the AAB will on occasion refer an issue to the Tax Assurance Commissioner (TAC) as described below:

• where, exceptionally, the AAB cannot reach a unanimous decision and it is not appropriate to remit the issue in question for further work, the Chair will refer the issue to a TAC Meeting (usually including the Director General responsible for the relevant business area) 鈥� this includes disagreements over whether a proposal is consistent with the Litigation and Settlement Strategy
• the Chair may refer any other issue to a Tax Assurance Commissioner meeting for a decision should they, in conjunction with the TAC Secretariat, think it is appropriate to do so

2. Composition and administration of the AAB

Chair

The Director of Counter Avoidance will chair the AAB.

A deputy director from Counter Avoidance who is a permanent member of the AAB may deputise as Chair, or the Chair may choose to co-opt another director to the Board to deputise.

Permanent members of the AAB

The permanent members of the AAB are:

• Director, Counter Avoidance (Chair)
• Deputy Director, Counter Avoidance (x2)
• Deputy Director, Business, Assets and International
• Deputy Director, Indirect Tax
• Deputy Director, Individuals Policy
• Deputy Director, Fraud Investigation Service
• Deputy Director, Large Business
• Deputy Director, Solicitor鈥檚 Office and Legal Services (x2)
• SOLS Commissioners鈥� Advisory Accountant
• Deputy Director, Professionalism, Capability and Assurance

Quorum

The AAB shall not be authorised to make a decision unless there are a minimum of 5 permanent board members, or their deputies of the same grade, present at a meeting (see exception below for urgent issues). Further, no decision is to be taken on any issue where a permanent member (or their nominated deputy) who is a significant stakeholder in relation to that issue is absent.

The secretary will be responsible for ensuring the Quorum is reached. If the secretary establishes the quorum cannot be met, they will alert the Chair, cancel the meeting and, with the agreement of the chair, arrange a more suitable date.

Deputies

Exceptionally, a permanent member may be represented at a Panel meeting by a deputy. That deputy must be at Grade 6 level or above and will normally be nominated by the permanent member.

Non-permanent members of the AAB

Deputy Directors (SCS1), or their nominated deputies, who are not permanent members can be co-opted to the Board when an issue has been referred to the AAB from their Directorate, or where they hold a significant stakeholder interest.

Conflict of interest

Before any issue is discussed, any person who is present at an AAB meeting will declare any conflict of interest. In this context a conflict of interest is deemed to include any prior contribution to discussions with customers or HMRC issue owners as to the basis on which an avoidance issue might be resolved. Conflicts of interest are to be clearly noted but will not prevent the person from forming part of the quorum unless the Chair decides that this is appropriate.

Arrangements for meetings

Meetings of the AAB will usually be held monthly or at such times as the Chair may decide. They will normally be virtual meetings.

The issue owners are expected to join the meeting to set out the issue and recommendations and to answer questions from the Panel.

Arrangements for urgent issues

The Chair will decide when a matter might be dealt with outside of the normal AAB meeting schedule, but such occasions will be rare.

For exceptionally urgent matters the secretariat will seek to arrange a meeting between panel members or their deputies sufficient in number to form a quorum. Alternatively, the Chair may choose to co-opt 2 other directors to the AAB to consider an exceptionally urgent issue, in which case the 3 Directors will be authorised to decide the matter provided key stakeholders are represented.

The AAB may also make decisions by correspondence where it is appropriate to do so. Where AAB business is dealt with by correspondence, usual AAB procedures will apply.

Referrals

Referrals must be made using the AAB submission template (unless agreed otherwise with the AAB secretariat) and should be sent to the AAB secretariat 15 working days prior to the meeting at which it is proposed they are discussed. The secretariat will aim to make papers available to panel members 5 working days before the AAB meeting.

Sign-off for submissions is required from:

• the person(s) making the submission
• a Grade 6 with responsibility for the work area
• for Counter Avoidance submissions only, the Counter Avoidance Operational Policy team
• an SCS from the business area

All referrals, including requests for advice, must be made via the AAB secretariat. All referrals must carry appropriate security markings.

Attendees

Submissions should include details of any suggested attendees.

It is assumed that members will read all papers in advance and the information therein should be sufficient for a decision to be reached. Invited attendees may, however, be called upon to answer questions or otherwise to provide clarification. Invited attendees will be provided in advance with details of how to join the meeting and a time slot.

Records

The Secretary will keep a formal record of all decisions and action points. These will be issued to the relevant stakeholders after the meeting.

Update to the Tax Assurance Commissioner

A short note summarising each individual issue considered by the AAB will be sent to the Tax Assurance Commissioner after every meeting.

Referrals to the Commissioners

Any referrals from the AAB to the Commissioners shall be made from the Chair.

Periodic review of remit and procedures

The AAB will review its remit and procedures on a regular basis. Any significant changes must be approved by the Tax Assurance Commissioner.