Definition of disclosure of tax avoidance schemes DoTAS

Certain tax planning has to be disclosed to HMRC. The disclosure is usually made by a ‘promoter’ although in some situations the disclosure must be made by the taxpayer. A ‘promoter’ is a person who is involved in the provision of tax services in relation to the planning. A promoter may also be a bank or a securities house.

The legislation currently applies to income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax, the annual tax on enveloped dwellings and national insurance contributions. In broad terms, it applies where there are arrangements which generate a tax advantage and where the arrangements fall within one or more specific hallmarks. Similar rules apply to inheritance tax when a person makes or amends their will or codicil or property is transferred into trust.

Different disclosure rules also apply to certain VAT arrangements until 1 September 2017. From that date it is proposed that in Finance Act 2017, the primary responsibility for disclosing schemes is moved from users to promoters of arrangements with hallmarks more in line with direct taxes. The scope of indirect tax disclosure will also be extended to include insurance premium tax, all duties of excise, landfill tax, aggregates levy, climate change levy and customs duties. [1]

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