AHP4200 - The gateway process: Gateway 1

The governance process starts once an avoidance risk has been identified. As noted at AHP3300 this may be via one of the disclosure regimes or through other intelligence or risking work.

Where the risk is a direct tax disclosed scheme, the process for developing the handling strategy starts with a DOTAS disclosure being received by Counter-Avoidance who will identify stakeholders and refer the risk to the relevant policy owner to develop and agree a handling strategy.

Where the risk is identified, other than through disclosure, it must be referred to AAB Secretariat who will consult with stakeholders to develop a handling strategy.

The governance process for non-disclosed avoidance risks is the same as that for disclosed risks.

Indirect tax avoidance schemes are dealt with by the Mid-sized Business Indirect Tax Avoidance and Partial Exemption (iTAPE)i team, and governance is the same as for direct tax schemes.

AAB Secretariat will register each new risk and create an Avoidance Risk Governance Document (ARGD), then refer it to the appropriate policy owner. The policy owner will work in collaboration with all relevant stakeholders where necessary, for example the Counter-Avoidance Strategic Risk Lead, operational directorates, Solicitor’s Office, accountants and other specialists to develop the handling strategy. All taxes and duties should be taken into account when formulating the handling strategy, and potential General Anti Abuse Rule (GAAR) arguments should also be considered.

The policy owner should complete the Handling Strategy tab of the Avoidance Risk Governance Document to record details of the risk and the agreed handling strategy. The policy owner will be given access to the ARGD by AAB Secretariat; anyone else requiring access should contact Secretariat setting out why access is required.