A7.307 Promoters of tax avoidance schemes—monitoring notices
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 when HMRC can issue a monitoring notice. For a discussion of the effect of a monitoring notice, see A7.308.
A monitoring notice can also be given to a partnership. See A7.313.
HMRC can apply to the tribunal (see below) for approval to give a person a monitoring notice where they are or were subject to a conduct notice (see A7.303, A7.304) and the officer has determined either that they failed to comply with one or more conditions of the notice or they provided false/misleading information or documents in relation to the notice1.
Where the person carrying on a business as a promoter (see A7.301A) is currently subject to a conduct notice, the officer must make the application to the tribunal within 12 months from the date the officer determined that the person had failed to comply with the conduct notice or provided false/misleading information2.
Where the person carrying on a business as a promoter was subject to a conduct notice that has since expired, the officer can make the determination at any time within six years of the expiry of