Commentary

A7.240 DOTAS—overview of HMRC information powers

Administration and compliance

A7.240 DOTAS—overview of HMRC information powers

DOTAS—information and enforcement

A7.240 DOTAS—overview of HMRC information powers

For the latest New Development, see ND.1738.

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 is an overview of the information powers that can be used by HMRC in relation to DOTAS.

For the definition of arrangements and proposals, see A7.205–A7.206. For the definition of promoter, see A7.210.

HMRC information powers in relation to DOTAS

HMRC has powers to investigate suspected non-compliance with the DOTAS regime. These can be grouped into the following categories:

  1.  

    •     powers that can be used where HMRC suspects that the proposal/arrangements are notifiable but have not been notified

  2.  

    •     powers that can be used where a disclosure has been made, but HMRC needs more information/documents

Each of the powers under these categories is summarised below.

HMRC suspects that the proposal/arrangements are notifiable

HMRC has a number of options where it suspects that the proposal/arrangements are notifiable.

PowerDescriptionCommentary
Issue a notice (a FA 2004, s 310D notice2) requiring information in relation to proposals/arrangements that HMRC suspects are notifiable but have not been disclosedThe notice

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