HMRC this week published draft regulations to increase the penalties under the Disclosure of Tax Avoidance Scheme (DOTAS) regime in certain circumstances.
These regulations amend the Tax Avoidance Schemes (Penalty) Regulations 2007 (SI 2007/3104) (“the principal regulations”). The principal regulations increased the maximum penalties for failure to comply with certain disclosure obligations from £600 to £5,000 per day where the Tribunal has made a disclosure order. The amendment regulations prescribe similar increased maximum amounts in similar circumstances for new penalties introduced in the Finance Act 2010.
The draft regulations and explanatory memorandum can be accessed here.