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<p>Under the Disclosure of Tax Avoidance Scheme (DOTAS) regime introduced in 2004,
promoters of a tax scheme are required to notify HM Revenue and Customs (HMRC) where
a scheme contains various hallmarks of tax avoidance. Once notified, HMRC send the
promoter a Scheme Reference Number (SRN) to give to any user of the scheme. Users
must then include the reference number on their tax return. This helps identify users
to HMRC for possible investigation.</p><p> </p><p>Since 2009 promoters have been required
to inform their clients that disclosure under DOTAS does not represent approval of
the scheme by HMRC. Employers involved in disguised remuneration schemes and promoters
are legally obliged to inform their employees and clients via forms AAG7 or AAG6.
Both forms AAG6 and AAG7 make it absolutely clear that the recipient is involved in
a disclosed tax avoidance scheme, that the scheme is not HMRC approved, and that DOTAS
registration means the recipient is likely to be investigated for tax avoidance by
HMRC.</p><p>Failure to inform clients carries a penalty of £5,000 per failure for
promoters, and up to the same amount per employee, for employers.</p><p> </p><p>Further
information about forms AAG6 and AAG7 is available at the links below: <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491693/AAG6_10_15.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491693/AAG6_10_15.pdf</a>;
<a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491713/AAG7_10_15.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/491713/AAG7_10_15.pdf</a></p>
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