Company’s liquidation is no excuse for failure to notify

HMRC claimed that Industria promoted loan schemes which enabled contractors to receive most of their pay in the form of loans with only an amount equivalent to the national minimum wage paid through PAYE thus having a reduced liability to income tax and National Insurance.

The department had issued FA 2008 Sch 36 information notices to several users of the arrangements. After reviewing documents obtained as a result HMRC wrote to the company to explain that the arrangements were notifiable under the disclosure of tax avoidance schemes (DOTAS) legislation. Its intention was to apply to the First-tier Tribunal for penalties under TMA 1970 s 98C for failure to notify the arrangements.

The tribunal was satisfied that the arrangements were notifiable within the meaning of FA 2004 s 306(1). The judge said ‘other than to seek a tax advantage there was no...