ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
Marlow Ltd's advisers promote a scheme that is a notifiable arrangement under the Disclosure of Tax Avoidance Schemes (DOTAS) rules. Who is primarily responsible for notifying HMRC of the scheme?
The promoter must notify HMRC of a notifiable scheme within the prescribed period after making it available. HMRC then issues a scheme reference number to be passed to users. Users take on disclosure only in limited cases, such as an offshore promoter or legal professional privilege.
- AThe promoter, who must disclose it within the prescribed time after making it availableCorrect
- BThe client user, who must file a notification before using it
- CThe company's external auditor, as part of the audit
- DHMRC, which must identify the scheme and then notify the client
Explanation
Under DOTAS the promoter has the primary duty to disclose notifiable arrangements to HMRC within a short prescribed period. HMRC then issues a scheme reference number (SRN) which the promoter passes to clients, who must report it on their returns. The client is responsible only if there is no UK promoter or if legal professional privilege prevents the promoter disclosing.
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