SCHEDULES
SCHEDULE 21Penalties relating to offshore matters and offshore transfers
Amendments to Schedule 41 to the Finance Act 2008 (c. 9)
I45
Schedule 41 to FA 2008 (penalties: failure to notify etc) is amended as follows.
6
I21
Paragraph 12 (reductions for disclosure) is amended as follows.
I22
For sub-paragraph (1) substitute—
1
Paragraph 13 provides for reductions in penalties—
a
under paragraph 1 where P discloses a relevant failure that involves a domestic matter, and
b
under paragraphs 2 to 4 where P discloses a relevant act or failure.
1A
Paragraph 13A provides for reductions in penalties under paragraph 1 where P discloses a relevant failure that involves an offshore matter or an offshore transfer.
1B
Sub-paragraph (2) applies where P discloses—
a
a relevant failure that involves a domestic matter,
b
a non-deliberate relevant failure that involves an offshore matter, or
c
a relevant act or failure giving rise to a penalty under any of paragraphs 2 to 4.
I23
In sub-paragraph (2), for “a” substitute “
the
”
.
I5I14
After sub-paragraph (2) insert—
2A
Sub-paragraph (2B) applies where P discloses—
a
a deliberate relevant failure (whether concealed or not) that involves an offshore matter, or
b
a relevant failure that involves an offshore transfer.
2B
P discloses the failure by—
a
telling HMRC about it,
b
giving HMRC reasonable help in quantifying the tax unpaid by reason of it,
c
allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and
d
providing HMRC with additional information.
2C
The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).
2D
Regulations under sub-paragraph (2C) are to be made by statutory instrument.
2E
An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.
I25
At the end insert—
5
Paragraph 6A(4) to (5) applies to determine whether a failure involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.
6
In this paragraph “relevant failure” means a failure to comply with a relevant obligation.
I67
In paragraph 13 (amount of reduction for disclosure), for the Table in sub-paragraph (3) substitute—
Standard %
Minimum % for prompted disclosure
Minimum % for unprompted disclosure
30%
case A: 10%
case B: 20%
case A: 0%
case B: 10%
70%
35%
20%
100%
50%
30%
I38
After paragraph 13 insert—
13A
1
If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.
2
But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—
a
for a prompted disclosure, in column 2 of the Table, and
b
for an unprompted disclosure, in column 3 of the Table.
3
Where the Table shows a different minimum for case A and case B—
a
the case A minimum applies if HMRC becomes aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure;
b
otherwise, the case B minimum applies.
Standard %
Minimum % for prompted disclosure
Minimum % for unprompted disclosure
30%
case A: 10%
case B: 20%
case A: 0%
case B: 10%
37.5%
case A: 12.5%
case B: 25%
case A: 0%
case B: 12.5%
45%
case A: 15%
case B: 30%
case A: 0%
case B:15%
60%
case A: 20%
case B: 40%
case A: 0%
case B: 20%
70%
45%
30%
87.5%
53.75%
35%
100%
60%
40%
105%
62.5%
40%
125%
72.5%
50%
140%
80%
50%
150%
85%
55%
200%
110%
70%