In a consultation paper titled Strengthening Sanctions for Tax Avoidance, HMRC has set out and distributed new proposals to tackle the serial use of tax avoidance schemes.
Tax avoiders already face penalties, but this new consultation lays out additional financial costs like surcharge and additional reporting requirements on users of multiple schemes that fail.
The consultation also considers the introduction of specific penalties for cases where the General Anti-Abuse Rule (GAAR) applies. The GAAR is an overarching means of counteracting abusive tax arrangements.
As part of the clampdown, HMRC has set up a new Serial Avoiders Unit (SAU) to identify and handle users of multiple avoidance schemes. The unit will facilitate resolution of tax affairs for people who have used multiple schemes and want to get their tax affairs in order.