In March 2017, HMRC published updated guidance on its fit and proper persons test, in an attempt to make sure that charities are not managed or controlled by individuals who present a risk to the charity’s tax position. A trustee will fail the test if they have been involved in tax avoidance schemes.
HMRC has also added the following helpful points to the guidance:
- An individual will not be considered to be actively involved in designing or promoting tax avoidance schemes merely because they work for, or in, the same organisation or partnership as an individual who has been actively designing or promoting schemes.
- In all cases, HMRC will consider all the relevant circumstances, such as, the nature and size of the scheme, the extent of the manager’s involvement and the likelihood of their future participation in such schemes.