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

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 issue of a conduct notice where promoter has been promoted defeated schemes. For details of the issue of a conduct notice where the promoter has met any of the threshold conditions, see A7.303.

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

Conduct notices for defeated arrangements

An authorised HMRC officer may issue a conduct notice where they become aware that1:

  1.  

    •     become aware that a promoter 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

  2.  

    •     determine that this should be regarded as significant

The conditions are2:

  1.  

    (a)     there have been three relevant defeats of a promoter's promoted arrangements in the preceding three years

  2.  

    (b)     a promoter has been given a defeat notice in respect of one relevant defeat in the preceding three years and there have been two further relevant defeats while that notice had effect, or

  3.  

    (c)     a promoter has been given a defeat notice in respect of two relevant defeats in the preceding three years and there is a further relevant defeat while that notice had effect

For commentary on defeat notices, see

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