Number of determinations issued to employers in respect of all Disguised Remuneration demands

The request was refused by HM Revenue and Customs.

Dear HM Revenue and Customs,

I note from a previous FOI request that HMRC confirmed to Sir Amyas Morse Loan Charge Review team that the transfer of underlying tax liability can occur as follows (I'm quoting the text provided bY HMRC in response tp Sir Amyas Morse LCR question):

7.11. Under regulation 81 of the PAYE regulations, HMRC can transfer an income tax liability arising under the DR rules , which includes the underlying liability and the loan charge, to an employee where:

• HMRC has issued a determination to an employer in respect of the liability;
• the determination has become final; and
• the employer has not paid the liability within 30 days.

This excerpt is taken from the FOI response provided below:

https://www.whatdotheyknow.com/request/6...

Based on the HMRC response. provided to Sir Amyas Morse and his team, I am interested to understand how many determinations were issued to employers associated with Disguised Remuneration schemes for all years up to and including 2019 As HMRC maintained a DOTAS register for these schemes, it should be very easy for HMRC to confirm the number of registered DOTAS scheme employers who were issued with determinations, failed to pay the liability within 30 days, which resulted in HMRC deciding to then transfer the liability to taxpayers.

1. For each of the years 2003 through to 2019, how many determinations did HMRC issue to employers (or onshore entities where offshore schemes were used) associated with DOTAS schemes in each year?

2. For each of the years 2003 through to 2019, how many determinations did HMRC issue to employers (or onshore entities where offshore schemes were used) for non-DOTAS registered schemes in each year?

3. Of the determinations issued in each year, what percentage of these resulted in the liability being paid within 30 days by an employer (including onshore entities)?

4. For each of the years 2003 through to 2019, how much of the underlying tax amount and percentage of tax at risk was paid by employers (or onshore entities where offshore schemes were used) following an HMRC determination, and how much was transferred to employees?

5. What is the total amount of underlying liability, including interest and penalties, that HMRC is now seeking from individuals it considers to be in scope for Disguised Remuneration settlement for years prior to Dec 9th 2010 and where HMRC has failed to meet ALL of the published Regulation 81 pre-requiisites above

Yours faithfully,

Stephen Campbell

no-reply@hmrc.ecase.gsi.gov.uk on behalf of FOI Central Team, HM Revenue and Customs

Our ref: FOI2020/02982

Dear Mr Campbell,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 22nd November which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

As you will appreciate, the coronavirus pandemic has provided
unprecedented challenges for Government Departments including HMRC. Over
the coming weeks our priorities are to provide critical existing and new
Public Services for Government to support customers during this difficult
time. As a result, resources may be diverted away from usual compliance or
information rights work. HMRC aims to respond to all FOIA Requests within
20 working days. If for whatever reason this timescale cannot be complied
with HMRC will, where possible, write to you explaining the reason for the
delay and providing an estimated time for response.

Yours sincerely

HMRC Freedom of Information Act Team

no-reply@hmrc.ecase.gsi.gov.uk on behalf of FOI Central Team, HM Revenue and Customs

1 Attachment

Dear Mr Campbell

We are writing in response to your request for information, received 22
November 2020.

Yours sincerely,

HMRC Freedom of Information Team

Dear HM Revenue and Customs,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of HM Revenue and Customs's handling of my FOI request 'Number of determinations issued to employers in respect of all Disguised Remuneration demands'.

The request was rejected on the basis that HMRC could not see any way to reasonably narrow the scope of the request. I should really have been consulted on this so that I could help narrow the scope before the request was refused. I will provide the narrowed scope here to help HMRC to respond to the request in a way that satisfies my requirements and using information that HMRC has confirmed that it does have. I have re-drafted items 1 to 5 in my original request below (removing some points if necessary):

1. For each of the years 2003 through to 2019, how many Reg 90 determinations did HMRC issue to employers (or onshore entities where offshore schemes were used) associated with DOTAS schemes in each year?

Given that, by definition, HMRC maintains a register of DOTAS schemes for all DOTAS registrations it received since the DOTAS introduction in 2004, a list of schemes in the scope of the request exists and must be easily retrievable and obtainable without any significant cost or effort.

I am interested to understand the efforts HMRC may have made to issue Reg 80 determinations to employers in DOTAS registered schemes that were used by taxpayers whom HMRC is now pursuing (by virtue of HMRCs apparent discretion to transfer PAYE liability to employees) and whose use of DOTAS schemes pre-dated the application of the Loan Charge (December 2010).

Given that HMRC has a comprehensive register of all schemes notified to it under DOTAS, (since 2004 when DOTAS was introduced) it should be possible to confirm, for each year since 2004, how many DOTAS registered scheme employer entities (which majority of taxpayers disclosed on their SATRs and where a matching scheme reference number was specified in the same SATRs), were issued with Reg 80 determinations. HMRC confirmed that it has data on Reg 80 determinations issued and paid so identifying Reg 80s issued to entities where employer name matches DOTAS registered employer name does not appear to be an onerous undertaking.

3. Of the Reg 80 determinations issued in each year to employers in DOTAS registered schemes, what percentage of these resulted in the liability being paid within 30 days by an employer (including onshore entities)?

Given 2, it should be possible to provide the answer to 3, with HMRC having confirmed the following"

HMRC does maintain a record of all Reg 80 charges raised and paid, however this covers
the entirety of HMRC and is not specific to your line of enquiry. The record does not contain
the level of data necessary to provide the information requested without considerable
manipulation and associated cost.

I am interested specifically to understand how many of these Reg 80 determinations that HMRC issued relate to DOTAS scheme employers. It would appear that all data necessary to confirm this is readily available. Can I help by narrowing the request as follows?

For all DOTAS registered schemes since 2004, please provide data that confirms how many Reg 80 determinations were issued to DOTAS employers for all years after 2004 for which this data is readily accessible.

For all Reg 80 determinations issued to this subset of employers, how many were paid within 30 days?

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/n...

Yours faithfully,

Stephen Campbell

no-reply@hmrc.ecase.gsi.gov.uk on behalf of FOI Central Team, HM Revenue and Customs

Our ref: IR2020/03660

Dear Mr Campbell,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 23rd December which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

As you will appreciate, the coronavirus pandemic has provided
unprecedented challenges for Government Departments including HMRC. Over
the coming weeks our priorities are to provide critical existing and new
Public Services for Government to support customers during this difficult
time. As a result, resources may be diverted away from usual compliance or
information rights work. HMRC aims to respond to all FOIA Requests within
20 working days. If for whatever reason this timescale cannot be complied
with HMRC will, where possible, write to you explaining the reason for the
delay and providing an estimated time for response.

Yours sincerely

HMRC Freedom of Information Act Team

FOI Central Team, HM Revenue and Customs

1 Attachment

Dear Mr Campbell,

We are writing in response to your request for information, received 23
December.

Yours sincerely,

HMRC Freedom of Information Team