UK Revenue Service publishes the list of tax evasion schemes

17.07.2014

Her Majesty Revenue Service (HMRS) published the list of schemes which are used by taxpayers in order not to pay taxes. The list consists of three pages with different numbers, each of which is attributed to the one scheme.

Scheme numbers are issued by HMRS officers in accordance with DOTAS rules. Therefore, if the person participating in the tax evasion scheme tells HMRS about his participation and disclose to the Revenue Service information on the scheme used, the officer will submit the information received to the register and put it under the special number. Taxpayer that disclosed the information is under no obligation to pay penalties.

HMRS also stated that those persons that use any of the stated in the list schemes shall pay taxes in advance by so called “accelerated payment”.

Source: https://www.gov.uk/government/publications/tax-avoidance-schemes-on-which-accelerated-payments-may-be-charged-by-hmrc

Expert’s opinion

It is not really clear how all of this is working on practice. The list of HMRS schemes surely is published, but the actual description of the schemes is not there. We can understand one thing clear those ones, who will be the first to run to and to tell HMRS about the business scheme used for tax evasion, will be freed from the punishment. But it is still not clear how HMRS is planning to turn these provisions into actual actions.

Alexandra Mihno ( Lawyer, Honest&Bright)