Commentary

V5.358A Failure to disclose avoidance schemes (from 1 January 2018)

Part V5 Compliance, enforcement and appeals

V5.358A Failure to disclose avoidance schemes (from 1 January 2018)

V5.358A Failure to disclose avoidance schemes (from 1 January 2018)

Introduction

Businesses which use or market VAT avoidance schemes are required to disclose such schemes to HMRC1. This paragraph describes the penalties for the failure to disclose avoidance schemes under the disclosure scheme which operates from 1 January 2018 (for which see V5.213). For penalties for failure to disclose under the scheme which operated prior to 1 January 2018 (for which see V5.213E), see V5.358.

Penalty

Penalty for non-compliance with certain duties (“initial penalty”)

A person who fails to comply with the following provisions (for which see V5.213A) of Finance (No 2) Act 2017 Sch 17 is liable to a penalty2

  1.  

    (a)     paragraph 11(1) (duty of promoter in relation to notifiable proposal),

  2.  

    (b)     paragraph 12(1) (duty of promoter in relation to notifiable arrangements),

  3.  

    (c)     paragraph 17(2) (duty of person dealing with promoter outside United Kingdom),

  4.  

    (d)     paragraph 18(2) (duty of parties to notifiable arrangements not involving promoter),

  5.  

    (e)     paragraph 19 (duty to provide further information requested by HMRC),

  6.  

    (f)     paragraph 21 (duty of promoters to provide updated information),

  7.  

    (g)     paragraph 23(2) (duty of promoter to notify client of reference number),

  8.  

    (h)     paragraph 24(3) (duty of client to notify parties of reference number),

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial