A7.301 Promoters of tax avoidance schemes—introduction and definitions
For the latest New Developments, see ND.1739, ND.1740.
With effect from 17 July 2014, legislation has targeted1 certain promoters of tax avoidance schemes, referred to as 'high risk promoters', whom HMRC considers constitute a higher than average risk, usually on the basis that they fail to comply with their duties under the disclosure of tax avoidance schemes (DOTAS) regime, either through failure to comply with DOTAS or failure to respond to HMRC information notices. The promoters of tax avoidance schemes rules are also referred to as 'POTAS'.
The legislation is strict and complex, and provides that when a promoter triggers any 'threshold' condition (see A7.302), HMRC may issue a 'conduct' notice (see A7.303). Failure to comply with a conduct notice may result in a 'monitoring' notice (see A7.307), the issue of which requires pre-approval by a Tribunal. Names of promoters subject to a monitoring notice may be published by HMRC, together with details of how the conduct notice was breached, and the promoter is required to publish their monitored status to clients (see A7.308).
Information requirements apply to