Tax Avoidance

(asked on 11th February 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many promoters of loan charge schemes have been (a) charged and (b) fined in relation to their activities.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 19th February 2020

A key part of HM Revenue & Customs’ (HMRC) strategy in tackling promoters of disguised remuneration and other tax avoidance schemes is to change their behaviour so that they stop this activity altogether.

HMRC have a range of legislative powers to tackle promoters, under three main regimes: Disclosure of Tax Avoidance Schemes (DOTAS), Promoters of Tax Avoidance Schemes (POTAS), and the Enablers penalty. Penalties can be charged for various failures to comply with the requirements of these regimes. HMRC’s Counter-Avoidance directorate, created in 2013, is responsible for applying these penalties in cases of marketed tax avoidance.

Fewer than five penalties have been charged under DOTAS by the Counter-Avoidance team since 2013. Before then a further 11 penalties were charged for more historic DOTAS failings.

In addition, there are four litigation decisions received since 2017, all in relation to disguised remuneration (DR) avoidance arrangements, which confirmed HMRC’s view that the schemes are notifiable under the DOTAS regime. Penalty action is being considered in each case.

No penalties have to date been issued under the POTAS or Enablers legislation. These regimes have had a positive impact in changing the behaviour of some promoters. As a result of HMRC’s concerted action under these regimes, a number of major promoters have now cooperated with HMRC and have either stopped selling schemes or ceased business altogether.

Reticulating Splines