When is an advisor a promoter?

We consider that a promoter includes an advisor who establishes, organizes, or sponsors a tax shelter. We will view a person as being a promoter where in the course of providing tax advice, they are "responsible for and contribute to the design of any of the tax avoidance elements" of the arrangements or proposed arrangements. For example:

• An advisor who is consulted on the design and explains why the design does not work, or offers suggestions for changes to it may be a promoter.
• An accounting firm that is consulted for accounting may be a promoter if, in the course of carrying out its responsibilities, it provides tax advice for the design of any of the tax avoidance elements.
• A law firm (which has a relevant business that includes giving tax advice) that is consulted may be a promoter if, in the course of carrying out its responsibilities, it provides tax advice for the design of any of the tax avoidance elements.

We will not view a person as being a promoter where in the course of providing tax advice, they are not responsible for, nor do they contribute to, the design of any of the tax avoidance elements.

Date modified:

2016-03-04