 |
answer text |
<p>A key component of HMRC’s strategy in tackling the promoters of tax avoidance schemes
is to change their behaviour so that they stop this activity altogether. HMRC has
a range of powers available to it under the Disclosure of Tax Avoidance Schemes (DOTAS),
Promoters of Tax Avoidance Schemes (POTAS), and the Enablers legislation. Charging
penalties is not the only sanction available under these regimes. As a result of HMRC’s
concerted action, a number of major promoters have now co-operated with HMRC and have
either stopped selling schemes or ceased in business altogether. Those who have failed
to comply with their obligations under the DOTAS legislation may face penalties. Fewer
than 5 penalties have been charged over the last 5 years.</p><p> </p><p>HMRC has challenged
a number of promoters under the POTAS regime, since it was introduced in 2014, which
were complied with as promoters ceased promoting schemes, but none have yet reached
the stage of incurring liability to a penalty. The Enablers legislation was introduced
in 2017. It imposes a new penalty of 100% of the gross fees, excluding VAT, for any
person who enables the use of tax avoidance arrangements that are defeated by HMRC.
It is too early for penalties to have been issued.</p>
|
|
