HMRC updates DOTAS guidance to reflect new powers

HMRC has updated its disclosure of tax avoidance schemes (DOTAS) and disclosure of tax avoidance schemes: VAT and other indirect taxes (DASVOIT) guidance to add details of HMRC’s power to issue a scheme reference number (SRN) where it reasonably suspects a scheme to be notifiable.

Under DOTAS or DASVOIT, HMRC can allocate an SRN to a scheme in two ways:

•  At the point the scheme is notified (HMRC will also inform the person who disclosed the scheme what SRN it has given).
•  At the point when HMRC identifies a new avoidance scheme or a scheme that continues to be sold on or after 10 June 2021. Where HMRC suspects the scheme should have been disclosed, it will send the promoter or supplier a notice giving them 30 days to demonstrate that the scheme is not notifiable. If HMRC does not receive a satisfactory reply, then HMRC may give the scheme an SRN. HMRC will also tell persons it suspects of being a promotor or supplier what SRN it has given.

HMRC has also added a new section to the guidance on publishing details of schemes, promoters and suppliers. After notifying a promoter or supplier of the SRN it has given to a scheme, HMRC can publish the name of the promoter or supplier. Before publishing, HMRC must allow them the opportunity to make representations about why their details should not be published and give full consideration to those representations.