We reported last month on further regulations relating to the controversial “high risk” promoters regime, which is part of HMRC’s efforts to reduce tax avoidance. The regime was introduced earlier this year (now referred to by HMRC as the Promoters of Tax Avoidance Schemes (POTAS) legislation), and was originally intended to target a handful of “cowboy” tax promoters, and provide HMRC with new powers and place onerous obligations on those promoters who become subject to a High Risk Promoters monitoring notice.
On 30 October 2014, draft regulations were published which define the type of misconduct, actions and penalties that will lead to a promoter satisfying the POTAS threshold conditions in relation to disciplinary action by a professional body or regulatory authority.
In the event that a promoter of tax avoidance schemes satisfies the threshold conditions, and an Authorised Officer of HMRC deems that satisfaction to be significant, the promoter will be made subject to a conduct notice. Such notices last for up to two years and require promoters to change their behaviour in relation to the schemes that they promote.
The consultation was open for just four weeks, comments having been sought by 27 November 2014.
To read the draft regulations click here.