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Tax Avoidance Schemes

As part of the Government’s crackdown on tax avoidance, ‘high risk’ promoters of avoidance schemes will be subject to a new disclosure regime. This will introduce objective criteria to identify the high risk promoter who in turn will then have new, higher standards of reasonable care and reasonable excuse applied. In turn, the clients of these promoters will amongst other obligations,  have to identify themselves to HM Revenue & Customs.

To ratchet up the pressure on avoidance schemes, users of an avoidance scheme that has been defeated in a Tribunal or Court case that involved another user of the scheme will then be obliged to concede the position themselves. HMRC will issue a notice to all users of the scheme requiring them to amend their returns or alternatively, explain why the decision does not apply in their case. A tax geared penalty will be charged where a scheme user failed to amend their return and it subsequently transpired that their scheme failed on exactly the same point of law.



Date: 5th December, 2013
Author: Cathy Corns


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