Disclosure of tax avoidance schemes
New rules are being introduced to strengthen and improve the Disclosure of Tax Avoidance Schemes (DOTAS) Regime. Revised guidance has now been issued related to the introduction of new penalties for failure to comply with the updated disclosure rules.
The following chapters of HMRC’s DOTAS guidance have been amended:
- Section 3 – Who discloses?
- Section 7 – The hallmarks
- Section 10 – When to disclose a scheme
- Section 11A (new) – Client lists
- Section 14 – Information powers
- Section 15 – Penalties
The new penalties, which come into effect on 1 January 2011, will affect all taxpayers who implement listed tax avoidance schemes as well as the promoters of tax avoidance schemes.
New regulations are also to be introduced to revise and extend the DOTAS hallmark schemes. However this measure is not expected to come into force until 2011 or 2012.