UK tightens grip on promoters of tax avoidance schemes

UK tax authority has published draft tax law aimed at imposing tougher legal consequences on promoters of tax avoidance schemes.

The government is seeking to introduce a new criminal offence to apply to promoters of tax avoidance who fail to comply with a Stop Notice under the Promoters of Tax Avoidance Schemes (POTAS) regime issued in respect of tax avoidance arrangements.

The proposed law would provide the tax authority with the power to apply to the court for a disqualification order against directors of companies involved in promoting tax avoidance, including other individuals who control or exercise influence over a company

Comments on the draft tax law must be received by September 12.