Last year’s introduction of the financial products hallmark has expanded the circumstances in which DOTAS is potentially relevant. The broad scope of this hallmark is troubling in the light of the evolution of DOTAS from a regime for the notification of novel transactions to a trigger for the potential application of more far reaching anti-avoidance provisions. Having disclosable proposals or arrangements now means not only having a duty to notify HMRC, but also being at risk of (among other things) losing out on government contracts and of having to pay disputed tax upfront.
This article was first published in the 3 February 2017 edition of Tax Journal.
