United Kingdom: HMRC consults on legislation for promoters of tax avoidance schemes
09 October 2014
Posted by: Author: Robert Lee
Author: Robert Lee (Tax-News.com)
HM Revenue and
Customs (HMRC) is consulting on draft regulations that will exclude two types
of persons from the definition of "promoter" for the purposes of the
Promoters of Tax Avoidance legislation.
The regulations are
intended to meet concerns raised during the development of the primary
legislation. They are relieving provisions and will have retrospective effect
from July 17, 2014, the date Royal Assent was given to Finance Act 2014.
will exclude from the definition of "promoter" a company that
provides in-house taxation services to companies in the same group and is not
in any sense marketing tax avoidance schemes to the public. It will also
exclude an adviser (such as a lawyer or accountant) who provides advice on a
discrete point of law or accountancy but is not involved in the overall design
of a tax avoidance scheme.
Under the Promoters
of Tax Avoidance legislation, HMRC can impose fines of up to GBP1m (USD1.6m) on
scheme promoters. Tax planning companies that are being monitored by HMRC must
state that they are a provider of such schemes on their website, inform all
present and prospective clients and issue them with a "promoter reference
number." This number must then be used by the clients on their tax returns
and any other material they send to HMRC. If an adviser fails to adhere to
these rules, they can be fined.
closes on October 31.
This article first appeared on tax-news.com.