A1

Paragraph 10 provides for reductions in penalties—

a

under paragraph 1 where a person discloses an inaccuracy that involves a domestic matter,

b

under paragraph 1A where a person discloses a supply of false information or withholding of information, and

c

under paragraph 2 where a person discloses a failure to disclose an under-assessment.

A2

Paragraph 10A provides for reductions in penalties under paragraph 1 where a person discloses an inaccuracy that involves an offshore matter or an offshore transfer.

A3

Sub-paragraph (1) applies where a person discloses—

a

an inaccuracy that involves a domestic matter,

b

a careless inaccuracy that involves an offshore matter,

c

a supply of false information or withholding of information, or

d

a failure to disclose an under-assessment.

1A

Sub-paragraph (1B) applies where a person discloses—

a

a deliberate inaccuracy (whether concealed or not) that involves an offshore matter, or

b

an inaccuracy that involves an offshore transfer.

1B

A person discloses the inaccuracy by—

a

telling HMRC about it,

b

giving HMRC reasonable help in quantifying the inaccuracy,

c

allowing HMRC access to records for the purpose of ensuring that the inaccuracy is fully corrected, and

d

providing HMRC with additional information.

1C

The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (1B)(d).

1D

Regulations under sub-paragraph (1C) are to be made by statutory instrument.

1E

An instrument containing regulations under sub-paragraph (1C) is subject to annulment in pursuance of a resolution of the House of Commons.

4

Paragraph 4A(4) to (5) applies to determine whether an inaccuracy involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.