Commentary

A7.260 DOTAS penalties—overview

Administration and compliance

A7.260 DOTAS penalties—overview

DOTAS—penalties

A7.260 DOTAS penalties—overview

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 penalties that can be charged by HMRC in relation to compliance failures associated with the DOTAS regime.

DOTAS penalties—overview

Penalties can be charged under the DOTAS regime for the failure2:

  1.  

    •     to make a disclosure of the notifiable proposal/arrangements by the time limit (see A7.261)

  2.  

    •     to provide information/documents required by HMRC in relation to the proposal/arrangements by the time limit (see A7.262)

  3.  

    •     of the scheme user to notify HMRC of their use of the notified arrangements (see A7.263)

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

The penalties in relation to failure to make the disclosure and failure to provide information/documents involve an initial penalty and a further penalty if non-compliance continues.

The penalties for the failure of the user to notify HMRC of their use of the arrangements depend

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