Tax Avoidance Schemes - Increased penalties for failure to comply with disclosure rules

8 November 2007

HMRC has statutory powers to ask the Special Commissioners to make an order requiring the promoter of what HMRC believes to be a tax avoidance scheme to comply with the disclosure rules. If such an order is made and the promoter fails to comply, the Special Commissioners may impose an initial penalty of up to £5,000 and, if the failure continues, HMRC may impose a further daily penalty of up to £600.

From 20 November 2007, the maximum daily penalty is increased to £5,000. The daily penalty may be imposed after 10 days, counting from the date on which the Special Commissioners' order is made.

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Further information:
The Tax Avoidance Schemes (Penalty) Regulations 2007
Memorandum to the Tax Avoidance Schemes (Penalty) Regulations 2007
The Tax Avoidance Schemes (Information) (Amendment) (No. 2) Regulations 2007
Memorandum to the Tax Avoidance Schemes (Information) (Amendment) (No. 2) Regulations 2007