DASVOIT ― penalties and powers

Produced by Tolley
DASVOIT ― penalties and powers

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • DASVOIT ― penalties and powers
  • Information powers
  • Pre-disclosure enquiries ― explaining why arrangements have not been disclosed
  • Pre-disclosure enquiries ― orders for supplementary information or documentation
  • Pre-disclosure enquiries ― notice requiring an introducer to provide information to HMRC
  • Orders stating a proposal or arrangements are disclosable
  • Orders deeming a proposal or arrangements to be disclosable
  • Incomplete disclosures
  • Information to enable HMRC to identify the end user of a proposal or arrangement
  • Penalties
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the penalties that can be imposed on a person who fails to comply with the reporting requirements in respect of a notifiable arrangement or proposal.

This note should be read in conjunction with the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction, DASVOIT ― notifiable arrangements and making the notification and DASVOIT ― the hallmarks guidance notes.

Information powers

Legislation has been introduced that includes powers that enable HMRC to:

  1. require a promoter to provide information about a party to the arrangements who is not a client

  2. enquire into the reasons why a promoter or an introducer has not disclosed a proposal or arrangements and require further information and documents in support of that claim

  3. require an introducer (a person who introduces clients to a promoter) to identify the person who provided him with information relating to the proposed arrangements and anyone with whom he has made a marketing contact in relation to the proposed arrangements

Finance (No 2) Act 2017, Sch 17, paras 28–34

The purpose of these provisions is to enable HMRC to identify notifiable arrangements / proposals that have not been disclosed and to identify the users of sucharrangements.

HMRC can also enforce disclosure by submitting an application to tribunal for an order to the effect that proposals or arrangements are notifiable or are treated as being notifiable under DASVOIT.

Pre-disclosure enquiries ― explaining why arrangements have not been disclosed

If HMRC suspects that a notifiable proposal / arrangement has

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