ARTICLE
10 September 2013

HMRC Seeks To Tackle High-Risk Promoters Of Tax Avoidance Schemes And Expand The Scope Of DOTAS

HMRC has published its latest consultation document "Raising the stakes on tax avoidance", which it claims marks a "significant new development" in its approach to tax avoidance.
United Kingdom Tax
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Summary and implications

HMRC has published its latest consultation document "Raising the stakes on tax avoidance", which it claims marks a "significant new development" in its approach to tax avoidance. The consultation focuses on new measures to obtain information about schemes, particularly those marketed and sold by high-risk promoters.

Ultimately the consultation aims to deter a small number of advisors from high-risk behaviour and discourage people from using their schemes.

  • High-risk promoters would be subject to hefty penalties for not providing information requested by HMRC.
  • Users would have to disclose in their returns that they have used avoidance schemes from high-risk promoters.
  • The scope of information HMRC wants to gather under the Disclosure of Tax Avoidance Schemes (DOTAS) regime would also be significantly expanded.

The consultation asks for responses on 42 detailed questions and pulls no punches as to why changes are necessary and what the behaviour is that they want to stop.

To read more, please click here.

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