A7.241 DOTAS—pre-disclosure enquiry
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 circumstances in which HMRC can issue a notice under FA 2004, s 313A requiring information in relation to any proposals/arrangements that may be notifiable. For an overview of the information powers that can be used by HMRC in relation to DOTAS, see A7.240.
For the definition of arrangements and proposals, see A7.205–A7.206.
Under the 'pre-disclosure enquiry' procedure, HMRC can issue a notice under FA 2004, s 313A2 to require information in relation to any proposals/arrangements that may be notifiable. The aim of the notice is to help HMRC to determine whether the proposals/arrangements are notifiable, not for HMRC to understand how the scheme works3.
The person subject to the FA 2004, s 313A notice must respond to HMRC to state whether the proposals/arrangements are notifiable, and, if not, why they are not notifiable4.
It is not sufficient for the person subject to the FA 2004, s 313A notice to refer to the fact that a lawyer or other professional has given an opinion that the proposal or arrangement is not notifiable. The reasons given for non-disclosure