Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many and what proportion people were (a) investigated and (b) prosecuted by HMRC for the (i) promotion and (ii) operation of marketed tax avoidance schemes in relation to activities involving disguised remuneration schemes.

HMRC takes tackling promoters of avoidance schemes seriously.

In recent years, HMRC has been investigating over 100 promoters and others involved in avoidance, including disguised remuneration arrangements. In the last year, HMRC has taken litigation action against 5 scheme promoters for failure to disclose under Disclosure of Tax Avoidance Schemes (DOTAS) with others deciding to disclose to avoid litigation. Further cases will be litigated in the year ahead.

HMRC has used its powers under the Promoters of Tax Avoidance Schemes (POTAS) legislation to challenge promoters and made three successful complaints to the Advertising Standards Authority about misleading advertising; two of which relate to disguised remuneration schemes.

HMRC considers criminal investigation and makes referrals to prosecuting authorities, where appropriate. Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016 more than 15 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance schemes and sentenced to over 95 years custodial with an additional 4 years suspended sentences being ordered, additional matters are the subject of ongoing enquiries.