Commentary

A7.309 Promoters of tax avoidance schemes—HMRC information powers with regard to monitored promoters

Administration and compliance

A7.309 Promoters of tax avoidance schemes—HMRC information powers with regard to monitored promoters

A7.309 Promoters of tax avoidance schemes—HMRC information powers with regard to monitored promoters

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 information required from promoters subject to a monitoring notice (see A7.307–A7.308).

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

Information notices

Targeted information powers allow HMRC to require a monitored promoter (see A7.308) or a 'relevant intermediary' to provide information or produce a document reasonably required for any of the following purposes1:

  1.  

    •     considering the tax consequences of implementing a 'monitored proposal', or

  2.  

    •     checking the tax position of any person who is reasonably believed to have:

    1.  

      –     implemented a 'monitored proposal' of the monitored promoter, or

    2.  

      –     entered into transactions forming monitored transaction of the monitored promoter

A 'relevant intermediary' is a person who is an intermediary in relation to a 'monitored proposal' (as defined under FA 2014, s 236) after that person has been notified of the promoter reference number of the promoter2.

A 'monitored proposal' for these purposes is a proposal where, whilst a monitoring notice is in effect, the promoter3:

  1.  

    •     made a firm approach to another person in relation to that

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