Tax Avoidance

(asked on 4th April 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 1 April 2019 to Question 237713, how many promoters and others involved in the marketing and promotion of tax avoidance schemes HMRC has investigated in the last 18 months.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 9th April 2019

HMRC uses a range of approaches to challenge promoters and others involved in the design, marketing and supply of avoidance schemes.

Over the last 18 months, HMRC has been investigating over 100 promoters and others involved in the promotion and marketing of tax avoidance schemes. HMRC has been successfully engaging with promoters encouraging them to change their behaviour. So far, around 20 promoters have moved out of promoting altogether.

HMRC are notified of tax avoidance schemes by promoters and others though the Disclosure of Tax Avoidance Schemes (DOTAS) regime. Around 30 schemes have been disclosed under DOTAS in the last 18 months.

HMRC has pursued 10 businesses promoting/ marketing avoidance schemes to litigation for failure to disclose under the DOTAS regime with around 20 others deciding to disclose to avoid litigation. Of the 10 cases, 6 have been heard before a tribunal and in each of the 3 decisions received so far, all have confirmed HMRC’s view that the schemes were disclosable, with decisions awaited in a further three cases. Further cases will be litigated in the year ahead.

HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising. As a result, other avoidance promoters can’t make the same claims about other similar arrangements.

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