FTT imposes maximum £1m DOTAS penalty for failure to notify (HMRC v Industria Umbrella)
Tax analysis: In HMRC v Industria Umbrella, the First-tier Tax Tribunal (FTT) held that, when considering the quantum of a penalty for the failure to notify arrangements under the disclosure of tax avoidance schemes (DOTAS) rules, the amount determined by the daily penalty calculation was insufficient, holding instead that the maximum £1m penalty was necessary. The FTT noted that the fees charged by the promoter were high-level, and given the question of whether the arrangements were notifiable was not complex, there was no reason for non-compliance.