A7.261 DOTAS penalties—disclosure penalties
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 penalties that HMRC can charge where there is a failure to disclosure the notifiable proposal/arrangements within the time limit. For the meaning of notifiable proposal/arrangements, see A7.205–A7.206.
For an overview of the DOTAS penalty regime, see A7.260. For the penalties that can be charged in relation to failure to provide information and documents to HMRC, see A7.262. For penalties that can be levied on the scheme user for failure to notify HMRC of their use of notified arrangements, see A7.263.
Penalties for failure to make the disclosure
In summary, the amount of the penalty for failure to make the disclosure within the time limit depends on all the facts and circumstances and is determined by the tribunal. Higher penalties can be charged if the tribunal has ordered the person to make the disclosure or if the level of the penalties would otherwise be inappropriately low.
The penalties may not be due if the person can show they had a reasonable excuse for failing to make the disclosure by the deadline.
Note that if the scheme involves a