To ask the Chancellor of the Exchequer, how many people have been convicted of offences relating to arrangements which have been promoted and marketed as tax avoidance schemes and sentenced to over 95 years custodial in relation to the promotion of loan schemes.
This Government is committed to tackling avoidance in all its guises. HM Revenue and Customs (HMRC) has a suite of powers to tackle and challenge those who promote or otherwise enable tax avoidance and HMRC is using its powers to challenge major promoters of avoidance schemes, including disguised remuneration (DR) avoidance schemes. In recent years, HMRC has been investigating over 100 promoters and others involved in avoidance, including disguised remuneration arrangements.
In the last couple of years, HMRC has also taken litigation action against 6 scheme promoters for failure to disclose under the Disclosure of Tax Avoidance Schemes (DOTAS) regime, with others deciding to disclose to avoid litigation. Further cases will be litigated in the year ahead.
HMRC has used its powers under the Promoters of Tax Avoidance Schemes (POTAS) legislation to challenge promoters and made three successful complaints to the Advertising Standards Authority about misleading advertising; two of which relate to disguised remuneration schemes.
HMRC considers criminal investigation and referrals to prosecuting authorities where appropriate. Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016, more than 20 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance schemes, resulting in over 100 years custodial and more than 7 years suspended sentences being ordered overall. Additional matters are the subject of ongoing enquiries.