DASVOIT ― penalties and powers

By Tolley

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

  • DASVOIT ― penalties and powers
  • Information powers
  • Penalties
  • Tribunal penalty proceedings
  • Reasonable excuse
  • Disclosure penalties
  • Other information penalties
  • User penalties
  • Publishing information notified to HMRC under DASVOIT
  • Information HMRC must publish after a court ruling that is relevant to the arrangements about which HMRC has published information

This guidance note provides an overview of the penalties that can be imposed on a person who fails to comply with the reporting requirements in respect of a notifiable arrangement or proposal.

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

Information powers

Legislation has been introduced that includes powers that enable HMRC to:

  • require a promoter to provide information about a party to the arrangements who is not a client
  • enquire into the reasons why a promoter or an introducer has not disclosed a proposal or arrangements and require further information and documents in support of that claim
  • require an introducer (a person who introduces clients to a promoter) to identify the person who provided him with information relating to the proposed arrangements and anyone with whom he has made a marketing contact in relation to the proposed arrangements

Finance (No 2) Act 2017, Sch 17, paras 28–34

The purpose of these provisions is to enable HMRC to identify notifiable arrangements / proposals that have not been disclosed and to identify the users of such arrangements.

HMRC can also enforce disclosure by submitting an application to tribunal for an order to the effect that proposals or arrangements are notifiable or are treated as being notifiable under DASVOIT.

Pre-disclosure enquiries ― explaining why arrangements have not been disclosed

If HMRC suspects that a notifiable proposal / arrangement has not been disclosed, it can send a written notice to a person that requires that person to provide an explanation regarding why he considers the arrangement

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