Commentary

A7.302 Promoters of tax avoidance schemes—threshold conditions

Administration and compliance

A7.302 Promoters of tax avoidance schemes—threshold conditions

A7.302 Promoters of tax avoidance schemes—threshold conditions

For the latest New Development, see ND.1740.

Promoters of tax avoidance schemes who satisfy one or more 'threshold conditions' relating to previous behaviour or who regularly promote avoidance schemes which are defeated are subject to a compliance regime. For an overview of the regime, see A7.301. This article considers the threshold conditions for the regime.

The promoters of tax avoidance schemes rules are also referred to as 'POTAS'.

Threshold conditions

If a promoter has met any one of the specified threshold conditions below in the previous three years, they are considered for a conduct notice (see A7.303–A7.304)1.

Threshold conditions can be amended by Treasury regulations, and new conditions may be added2. Initially, 11 threshold conditions were initially listed in the legislation3, and a further condition was added with effect from 15 September 20164.

The threshold conditions are as follows5:

  1.  

    (1)     publication of information about the promoter as deliberate tax defaulter (see A6.651)6

  2.  

    (2)     the promoter being named in a report for a breach of the Code of Practice on Taxation for Banks (see D7.701)7

  3.  

    (3)     promoter

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