Plans to introduce legislation to control monitored promoters of tax avoidance schemes have now entered the final stage with the release of a third consultation on the regulations needed to support the Promoters of Tax Avoidance Schemes (POTAS) legislation
The six-week consultation sets out amendments to Finance Act 2014 (High Risk Promoters Prescribed Information) Regulations 2015.
The draft rules set out the following:
- when a monitored promoter must explain in publications and correspondence that they are monitored under the POTAS legislation - the explanation must be clear and in writing in any publications or correspondence about tax avoidance arrangements and proposals, communications with existing or prospective clients or intermediaries about any tax avoidance schemes and correspondence with professional bodies and regulators;
- any information published on the internet has to set out the promoter’s monitored status clearly and prominently;
- clients of a monitored promoter must provide to HMRC about their use of the promoter’s products, and by when, where that information is not provided on a Self Assessment tax return (for example, because the tax avoidance concerns Stamp Duty Land Tax (SDLT)); and
- details about what information must be provided to HMRC by a monitored promoter or intermediary about avoidance products and clients which have been notified to HMRC.
These draft regulations will have effect once approved by the House of Commons.
Any comments should be sent to: [email protected] by 27 January 2015.