Strengthening the Tax Avoidance Disclosure Regimes
https://www.gov.uk/government/upload...ation_2014.pdf
HMRC has released a further document on Strengthening the tax avoidance disclosure regimes.
The proposals come hot on the heels of the accelerated payments and follower notice provisions in the Finance Act 2014, which raised the stakes for determining which schemes will be caught in the net.
Most of the suggestions concern ways to tighten the net around arrangements caught by the disclosure of tax avoidance schemes (DOTAS), which are now subject to the upfront payments. Other ideas include bringing IHT and VAT avoidance within the scope of DOTAS.
Between now and the consultation deadline on 23 October include:
• Removing the ‘grandfathering’ rule that omits schemes that are similar to arrangements made before 1 August 2006
• Widening the “hallmarks” of DOTAS-reportable schemes, for example to include a list of involving loans, derivatives and other financial products that give rise to a tax advantage
• Increased penalties for scheme users who do not notify a DOTAS scheme reference number in the correct box on the tax return.
