Commentary

A7.216 DOTAS hallmarks—confidentiality where promoter involved

Administration and compliance

A7.216 DOTAS hallmarks—confidentiality where promoter involved

A7.216 DOTAS hallmarks—confidentiality where promoter involved

The disclosure of tax avoidance scheme (DOTAS) rules require certain persons, usually promoters of schemes, but also users in certain circumstances, to provide HMRC with information about schemes falling within certain descriptions, known as 'hallmarks'. The person must tell HMRC how the scheme is intended to work, usually within five days of the date the scheme is made available to any person.1

For an overview of the DOTAS regime, see A7.202.

This article discusses the hallmark of confidentiality where a promoter is involved. For an overview of the hallmarks and lists that show which hallmarks must be considered in different situations, see A7.215.

For the meaning of 'promoter', see A7.210

Application of this hallmark

This DOTAS hallmark prescribes 'arrangements' that a promoter might wish to keep confidential from either HMRC or another promoter2. For the definition of 'arrangements', see A7.205.

This hallmark applies where a promoter is involved and the arrangements provide a tax advantage relating to income tax, corporation tax, capital gains tax, national insurance contributions, the apprenticeship levy or inheritance tax3. See A7.215.

This hallmark must be considered by the following persons when deciding whether the arrangements are notifiable for the purposes of a disclosure under DOTAS:

  1.  

    •     the promoter of the arrangements (see A7.210), or

  2.  

    •     the user of the arrangements, where they are required to make the disclosure because either4:

    1.  

      –     the promoter is exempt from making the disclosure due to legal professional privilege (see A7.213), or

    2.  

      –     the promoter is non-UK resident and has failed

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