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<p>Parliament has legislated the charge on Disguised Remuneration (DR) loans following
the normal Parliamentary process.</p><p>DR schemes are contrived arrangements that
pay loans in place of ordinary remuneration, with the sole purpose of avoiding income
tax and National Insurance contributions. The loans are provided on terms that mean
they are not repaid in practice, so they are no different to normal income and are,
and always have been, taxable.</p><p>The charge on DR loans, legislated in Finance
Act 2017, is a charge on DR loan balances outstanding at 5 April 2019. Its announcement
at Budget 2016 provided scheme users with a three-year period to repay their DR loans,
or to agree a settlement with HM Revenue and Customs (HMRC) before the charge takes
effect.</p><p>HMRC’s role is to tackle avoidance and evasion, making sure people pay
their fair share of tax and securing funding for our vital public services. Parliament
has given HMRC the powers it needs to challenge businesses and individuals who do
not pay their fair share, and it uses them responsibly and subject to appropriate
checks and balances.</p>
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