Clamping down on promoters of tax avoidance

The consultation seeks views on a range of new measures to further tackle promoters and enablers of tax avoidance including strengthened sanctions and additional HMRC powers taken at an earlier stage to disrupt the business model on which promoters rely.

The measures proposed in this consultation document are targeted at the hard core of promoters that remain in the market, and they aim to:

• clamp down on promoters who dissipate or hide their assets to avoid paying penalties by ensuring HMRC can protect its position to secure promoters’ assets to pay any relevant penalties
• tackle offshore promoters through the UK entities that support them by imposing a new penalty on the onshore entities who are associated with, and who facilitate, the activities of an offshore promoter
• give HMRC the power to ask a court to close down a company involved in promoting or enabling tax avoidance where it can be shown that they are not operating in the public interest, and disqualifying the directors at the earliest point possible
• support taxpayers to identify and exit avoidance earlier by providing more information on the products offered or sold to them by promoters, so they can make informed decisions

This consultation will be of particular interest to tax advisers, representative bodies, promoters of tax avoidance schemes, as well as businesses and individuals who may have used arrangements that seek to avoid paying tax.