A7.307 Promoters of tax avoidance schemes—monitoring notices
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 when HMRC can issue a monitoring notice.
The promoters of tax avoidance schemes rules are also referred to as 'POTAS'.
If a promoter fails to comply with one or more conditions in a conduct notice (see A7.303–A7.304), an authorised HMRC officer may apply to the Tribunal for approval to issue a monitoring notice (see below)1.
The application must include a draft of the notice, and the officer must also inform the subject of the potential monitoring notice of the Tribunal application. A monitoring notice cannot be given without the permission of the Tribunal. If, however, the breach of the conduct notice relates to the provision of information to customers or intermediaries, to the promoter's duty to supply information to HMRC, or is insignificant, the
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