A new consultation document has proposed that the Disclosure of Tax Avoidance Schemes (DOTAS) rules should be widened so that more tax schemes will be caught by new powers requiring accelerated payments of tax.

Under the DOTAS regime, the promoters of certain kinds of tax schemes are required to notify HM Revenue & Customs (HMRC) with those schemes’ details. Once notified, HMRC will issue the scheme with a DOTAS number which then must be included on any tax returns relating to the scheme. However, HMRC’s issuance of a DOTAS number does not indicate that it has approved the scheme as being compliant with tax rules.

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