Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)
Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)
  • Why does this matter?
  • Background and commencement
  • Which indirect taxes are within the rules?
  • What creates a requirement to disclose?
  • Arrangements and the main benefit test
  • Meaning of tax advantage in relation to VAT
  • Meaning of tax advantage in relation to other indirect taxes
  • Who must make a disclosure?
  • Who is a promoter?
  • More...

FORTHCOMING CHANGE relating to Finance Bill 2021: Finance Bill 2021 (FB 2021) introduces a new information notice that HMRC may issue to anyone it suspects of being involved in the supply of arrangements that should have been disclosed, and a power for HMRC to issue a scheme reference number if the requested information is not forthcoming. The change will apply from Royal Assent to FB 2021 and draft technical guidance was published on 23 March 2021. For more information on the FB 2021 provisions, see News Analysis: Spring Budget 2021—Tax analysis—Tackling promoters of tax avoidance, and for information on the draft clauses that were published in July 2020, see News Analysis: Draft Finance Bill 2020–21—promoters and enablers of tax avoidance schemes.

FORTHCOMING CHANGE relating to Finance Bill 2021–22: The government intends to introduce further measures to counter promoters of tax avoidance schemes in the Finance Bill 2021–22 (which is expected to be enacted as the Finance Act 2022). The measures include a new power for HMRC to freeze a promoter’s assets, penalties for UK entities that support offshore promoters, and another new power for HMRC to apply to wind up companies that promote tax avoidance and to disqualify the directors. For more information, see News Analysis: Tax consultation day—23 March 2021—Clamping down on promoters of tax avoidance.

This Practice Note describes the rules on the disclosure

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