UK Tax Authority Issues Guidance on Avoidance Scheme Penalties

The UK tax authority on Friday released guidance on a new law that empowers it to directly act against promoters of tax avoidance schemes.

His Majesty’s Revenue and Customs can now penalize people who fail to disclose tax avoidance schemes, with penalties appealable to an “impartial officer” within the tax authority’s legal group, according to the guidance.

Since March 18, HMRC has been empowered to impose penalties directly on anyone who fails to comply with disclosure of tax avoidance schemes, or DOTAS, obligations. The new powers are meant to deter non-compliant behavior, HMRC said.

• Previously, HMRC had to seek ...