Source: HMRC Press Release 14 October 2017
HM Revenue and Customs (HMRC) has won a landmark case against a tax avoidance scheme promoter that could lead to the recovery of £110 million.
The victory over scheme promoter, Root2, came after they failed to report a mass-marketed tax avoidance scheme, known as Alchemy, to the tax authority.
The First-tier Tribunal agreed with HMRC that the promoter did not abide by the DOTAS rules. There is no right of appeal against the Tribunal decision.
HMRC will seek to impose a substantial penalty on the promoter for failure to disclose the scheme.
HMRC does not approve tax avoidance schemes. Under DOTAS, promoters must notify HMRC of schemes that contain various hallmarks of tax avoidance. If a scheme has been notified under DOTAS, it does not in any way signify that it has been approved by HMRC.
DOTAS guidance can be found here.