A7.330 Sanctions for serial tax avoidance—overview

Administration and compliance

A7.330 Sanctions for serial tax avoidance—overview

Sanctions for serial tax avoidance

A7.330 Sanctions for serial tax avoidance—overview

A regime of warnings and escalating sanctions applies for those who persistently and repeatedly use tax avoidance schemes which are defeated by HMRC1, and can be summarised as follows:


    •     following the first defeat of a tax avoidance scheme, HMRC will issue a warning notice to the taxpayer, which will last five years initially


    •     during the warning notice period, the taxpayer must report annually to HMRC regarding their activities (and particularly any tax avoidance activities) in that year


    •     if a further tax avoidance scheme used by the taxpayer in the warning notice period is defeated by HMRC, a penalty will be imposed. Further penalties, on an escalating scale, will apply to any further defeats in the warning period


    •     if the taxpayer incurs three defeats in a warning period, HMRC may publish details of the taxpayer,

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial