The measure

HMRC published a consultation document in respect of the Disclosure of Tax Avoidance Schemes (DOTAS) regime at the time of PBR in December 2009. The paper set out five proposed measures:

• increased penalties for failure to comply with a disclosure obligation, subject to determination by the Tribunal;
• a new requirement for a person who introduces a client to a notifiable scheme to provide HMRC with the name and address of the promoter who provided them with details of that scheme;
• the introduction a new "trigger point" for the disclosure of actively marketed schemes - the point at which a promoter first communicates a fully designed scheme to a third party for the purpose of obtaining clients of that scheme;
• a new requirement for promoters to provide HMRC with periodic information about clients who implement a notifiable scheme for scheme reference members (SRNs) issued on or after the date the regulations come into force;
• the revision and extension of the Tax Avoidance Schemes Regulations 2006 which contain the descriptions of schemes to be disclosed, commonly referred to as "hallmarks"- the term used to describe the types of schemes that should be notified.

The Budget now proposes that some of changes are to be taken forward, but that consultation will continue, and that changes will be made to take into account the comments already made during the consultation process.

Who will be affected?

In the main, these proposals will affect the promoters of disclosable arrangements.

When?

HMRC propose to continue discussions with stakeholders who have contributed to the consultation, in order to revise and finalise the draft regulations with a view to finalising the regulations in the summer and their coming into force in the autumn of 2010.