Commentary

A7.230 DOTAS—what each person has to disclose

Administration and compliance

A7.230 DOTAS—what each person has to disclose

DOTAS—making disclosures

A7.230 DOTAS—what each person has to disclose

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 considers the disclosure required under DOTAS. For the deadline for making the disclosure, see A7.231. If the deadline for disclosure is missed, penalties may be charged, see A7.261.

Once the disclosure is made, HMRC will issue the scheme reference number. There are various duties that must be discharged on receipt of the scheme reference number, see A7.233.

Person who must make the disclosure to HMRC

Essentially, the point of making the disclosure under DOTAS is so that HMRC can understand how the scheme works2. The various forms listed below must be used to make the disclosure3.

The first step in making the disclosure is to determine who is required to do so4:

  1.  

    •     a promoter (see A7.210). If there is more than one promoter, see A7.214

  2.  

    •     a non-resident promoter—if the offshore promoter does not comply, the disclosure obligation can be shifted to another person (see A7.211)

  3.  

    •     a user of a scheme developed by the in-house tax department, ie there is no promoter (see A7.212)

  4.  

    •     a user of the scheme

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