Penalties for non-disclosure of tax avoidance schemes
New legislation came into force on 1 January 2011 concerning the penalties for failure to comply with the rules about the disclosure of tax avoidance schemes (DOTAS).
The new legislation will affect all taxpayers who implement listed tax avoidance schemes as well as the promoters of tax avoidance schemes.
The following changes came into effect on 1 January 2011:
- The introduction of a new “trigger point” for the disclosure of actively marketed schemes.
- New requirements for a person who introduces a client to a notifiable scheme to provide HMRC with the name and address of the promoter who provided them with details of that scheme.
- Increases in the penalties for failure to comply with a disclosure obligation.
- A new requirement for promoters to provide HMRC with periodic updates about clients who implement notifiable schemes.