Disclosure of Tax Avoidance Schemes | An Accountants Approach

1. The purpose of the Disclosure of Tax Avoidance Schemes is to alert Her Majesty’s Revenue and Customs (HMRC) of schemes with regard to individuals or corporations, who are avoiding taxes. Any party entering into a program and/or arrangement which offers the benefit of minimizing taxes is required to be disclosed. Disclosure of Tax Avoidance Schemes | An Accountants Approach

3. Hence, corporations or even individuals who fail to adhere to the disclosure rules may potentially face tax investigations by the HMRC and if upon completion of the investigation, HMRC finds that the said individual or corporation failed to the said rules, it may impose penalties upon the respective party for their failure to adhere to the respective rules.

4. Disclosure Regimes Three regimes fall under the category of disclosure regimes, mentioned below; Direct taxes (including Apprenticeship Levy) and National Insurance Contributions (DOTAS) The Disclosure of Tax Avoidance Schemes: VAT and other indirect taxes (DASVOIT) VAT Disclosure Regime (VADR)

5. Direct taxes (including Apprenticeship Levy) and National Insurance Contributions (DOTAS) • DOTAS guides promoters of Employment Benefit Trusts and other schemes, that is, the individuals who market or design the scheme to provide the relevant information about avoidance schemes to the HMRC. This must information must be provided within five days of when the scheme becomes available or is implemented. The promoter of the scheme is responsible to provide the scheme reference number which the HMRC has allotted to him through completing the form AAG6, to any user of the scheme, which is your client. https://theaccountancysolutions.com/tag/contractual-disclosure-facility

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