Commentary

A7.304 Promoters of tax avoidance schemes—conduct notices for defeated arrangements

Administration and compliance

A7.304 Promoters of tax avoidance schemes—conduct notices for defeated arrangements

A7.304 Promoters of tax avoidance schemes—conduct notices for defeated arrangements

HMRC has the power to stop persons promoting certain arrangements that may give rise to a tax advantage. HMRC can also require such persons to maintain certain conduct and monitor them if they fail to do so. This is known as the promoters of tax avoidance scheme (POTAS) regime. For an overview of the regime, see A7.301. For the key definitions, see A7.301A.

This article considers the issue of a conduct notice where promoter has been promoted defeated schemes. For the contents of a conduct notice, see A7.303.

Conduct notices for defeated arrangements

With effect from 15 September 2016, an authorised HMRC officer may issue a conduct notice to a person where1:

  1.  

    •     the person is 'carrying on a business as a promoter' (see A7.301A)

  2.  

    •     the officer becomes aware that the person meets any of the below conditions (except where a conduct notice (see A7.303) or monitoring notice (see A7.307) is already in effect), and

  3.  

    •     the officer determines that the person's meeting of the condition(s) is significant

The officer may ignore cases where any of the conditions are met but either the officer considers this to be insignificant when weighing up all the relevant circumstances or where little tax is at risk in relation to the person's activities as a promoter2.

Where the person is a member of a promotion structure under the 'multiple entity promoter' case, any meeting of a condition is always regarded as significant3. For the meaning of a

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