What penalties apply to Enablers of Tax Avoidance? When do they apply?

This is a freeview  'At a glance' guide to penalties and Enablers of Tax Avoidance.

From 2017 new penalties apply to ‘enablers’ of failed tax avoidance arrangements. There will also be a change in the way penalties are applied to users of failed tax schemes.

From 10 June 2021 Finance Act 2021 gives HMRC additional powers to:

These penalties are designed to stamp out the tax avoidance industry in the UK.

Finance (No2) Act 2017 provides that:

Penalties for enablers

Defeated tax avoidance arrangements

Penalties for enablers of offshore evasion

Finance Act 2016 introduced the first penalties for ‘enablers’ of tax avoidance, focusing on offshore evasion of:

Under the provisions a penalty is payable by a person (P) who enables another (Q) to carry out offshore evasion where the following conditions are met:

Useful guides on this topic

Penalties: Enablers of Tax Avoidance (subscriber version)
What penalties apply to Enablers of Tax Avoidance? When do they apply? Who is an enabler?

DOTAS: Disclosure of Tax Avoidance Schemes
What are the on Disclosure of tax avoidance schemes (DOTAS) rules? When should you disclose your use of a tax avoidance scheme? What are the consequences of non-disclosure? How are penalties calculated?

General Anti-Abuse Rule (GAAR)
What is the General Anti-Abuse Rule (GAAR)? When does it apply? 

Promoters of Tax Avoidance Schemes (POTAS)
Who is a Promoter? What are the Promoters of Tax Avoidance Scheme rules?  What does this mean for promoters, intermediaries and clients?


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