DASVOIT ― notifiable arrangements and making the notification

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • DASVOIT ― notifiable arrangements and making the notification
  • Notifiable arrangements
  • The five ‘tests’
  • Who has a duty to disclose?
  • Exemptions from making a disclosure
  • Making the disclosure
  • Arrangements that provide an advantage in respect of more than one tax
  • Client lists
  • What happens after the disclosure has been made?
  • Removal of reporting duties

This guidance note provides an overview of the types of DASVOIT notifiable arrangements and the procedure that must be used in order to make the relevant notification to HMRC.

This note should be read in conjunction with the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction, DASVOIT ― the hallmarks and DASVOIT ― penalties and powers guidance notes.

The Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction guidance note provides a definition of the types of persons who could be involved in a notifiable arrangement.

Notifiable arrangements

If all of the following criteria have been met, the arrangement or proposal is notifiable and must be disclosed to HMRC using the prescribed method:

  • they will, or might be expected to, enable any person to obtain a tax advantage
  • that tax advantage is, or might be expected to be, the main benefit or one of the main benefits of the arrangements
  • they are arrangements that fall within any description (the ‘hallmarks’) prescribed in the Notifiable Arrangements Regulations

HMRC VAT notice 799 ; The Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017, SI 2017/1215; The Indirect Taxes (Notifiable Arrangements) Regulations 2017, SI 2017/1216; Finance (No 2) Act 2017, s 66, Sch 17

HMRC has devised five tests (described below) that must be used in order to determine whether or not the above criteria have been met.

The five ‘tests’
Test 1

Are there arrangements that enable an indirect tax advantage to be obtained?

Please see the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction guidance note for details on what constitutes a tax

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