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.

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.

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.