For the GAAR Penalty, this detail includes the circumstances in which a penalty will be charged; the penalty rate chargeable; and safeguards to ensure proportionality. The consultation also sets out some further areas for consideration under the GAAR. For Promoters of Tax Avoidance Schemes, this detail includes the new threshold criteria definitions, including the number of schemes to be considered over a specified period of time.
This consultation closes on 14 October 2015.
Guidance on disclosure of tax avoidance schemes (DOTAS) 10 September 2015
Guidance has been published on what to do if you promote or use arrangements that will or are intended to provide the user with a tax and/or National Insurance contribution advantage when compared to adopting a different course of action.
The ‘ Disclosure of Tax Avoidance Schemes: guidance ’ includes advice on deciding if arrangements relating to income tax and national insurance contributions need to be disclosed and how to notify HMRC.
Ten things about disclosing a tax avoidance scheme 16 November 2015
If you’re a promoter, an intermediary such as a tax agent, an independent financial advisor, or a user of a tax avoidance scheme, you need to be aware of your responsibilities to disclose a tax avoidance scheme.
HMRC has published guidance which covers these ten points:
1. Most tax avoidance schemes have to be disclosed to HMRC 2. HMRC is tightening the rules on disclosure 3. You must disclose a tax avoidance scheme 4. HMRC is hunting down hidden tax avoidance schemes 5. HMRC is getting smarter at uncovering tax avoidance schemes 6. You could face a penalty if you don’t disclose 7. You need to check if the scheme should be disclosed 8. New sanctions and penalties for promoters who fail to disclose 9. HMRC’s litigation success means that you should get out of avoidance 10. HMRC have set up a hotline so you can report tax avoidance
Over £2 billion collected from tax avoidance scheme users 11 February 2016
New statistics reveal that HMRC has collected more than £2 billion in disputed tax from tax avoiders, under rules introduced by the government in 2014.
The new Accelerated Payments notices mean that users of tax avoidance schemes pay disputed tax up-front while their tax-affairs are investigated, instead of waiting until they are concluded. Given HMRC wins 80% of cases that go to court, this eliminates the financial advantage that tax avoiders previously enjoyed.
The latest edition of Spotlight has also been published which highlights some of the misleading claims that tax avoidance scheme promotors make to reel people and businesses in. Claims such as:
you can receive tax-free payments that are compliant with tax law the arrangements are recognised by HMRC as not an avoidance scheme.
Read Spotlight 29 for full details.
CIPP Policy News Journal
25/04/2016, Page 448 of 453
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