Avoidance

HMRC have published the second set of regulations required to support the promoters of tax avoidance schemes (POTAS) legislation.

The new document defines the type of misconduct, actions and penalties that will be relevant for assessing whether a party is subject to the POTAS rules and liable to a conduct notice.

The notices will last up to two years and require promoters to change their behaviour in relation to the schemes they endorse, according to the Revenue.

HMRC plan to make even greater use of technology

HMRC have issued 600 notices to avoidance scheme-users since late August, demanding that they pay more than £250m of disputed tax under the accelerated payments regime.

Many of the recipients have responded to arrange to make payments, covering over £25m of tax, according to the Revenue, and other taxpayers are also contacting officials to settle their affairs rather than wait to receive an accelerated payments notice (APN). 

Enterprise investment schemes could be HMRC’s next anti-avoidance target

The 2012/13 tax gap was £34bn, or 6.8% of tax liabilities, according to newly released HMRC figures, which show a small rise on the £33bn (6.6%) in the previous year (revised down from an initial £35bn).

CRC v University of Huddersfield Higher Education Corporation, Upper Tribunal (Tax and Chancery Chamber)

Vaccine Research Limited Partnership and another v CRC, Upper Tribunal (Tax and Chancery Chamber)

Implications of follower notices and accelerated payment demands

“Pay upfront” demand concerns Ingenious movie schemes

The UK is the first of 44 countries to commit formally to the new country-by-country reporting template proposed last week by the Organisation for Economic Cooperation and Development (OECD).

The move will improve transparency and help identify risks for tax avoidance, claimed financial secretary to the Treasury David Gauke.

He added, “In time, improved transparency between business and tax authorities will help developing countries in dealing with compliance, as they often lack the capacity to collect information themselves.

The Organisation for Economic Cooperation and Development (OECD) has revealed the opening strategies of its much-anticipated action plan for a coordinated international fight against tax avoidance by multinational enterprises.

N Pattullo (TC3958)