SCHEDULES
SCHEDULE 22Asset-based penalty for offshore inaccuracies and failures
PART 2Amount of penalty
Standard amount of asset-based penalty
I17
1
The standard amount of the asset-based penalty is the lower of—
a
10% of the value of the asset, and
b
offshore PLR x 10.
2
See also—
a
paragraphs 8 and 9, which provide for reductions in the standard amount, and
b
Part 3, which makes provision about the identification and valuation of the asset.
Reductions for disclosure and co-operation
I2I48
1
HMRC must reduce the standard amount of the asset-based penalty where P does all of the following things—
a
makes a disclosure of the inaccuracy or failure relating to the standard offshore tax penalty;
b
provides HMRC with a reasonable valuation of the asset;
c
provides HMRC with information or access to records that HMRC requires from P for the purposes of valuing the asset.
2
A reduction under sub-paragraph (1) must reflect the quality of the disclosure, valuation and information provided (and for these purposes “quality” includes timing, nature and extent).
3
The Treasury must make regulations setting out the maximum amount of the penalty reduction under sub-paragraph (1).
4
The maximum amount may differ according to whether the case involves only unprompted disclosures or involves prompted disclosures.
5
A case involves only unprompted disclosures where—
a
in a case where the asset-based penalty relates to only one standard offshore tax penalty, that standard offshore tax penalty was reduced on the basis of an unprompted disclosure, or
b
in a case where the asset-based penalty relates to more than one standard offshore tax penalty, all of those standard offshore tax penalties were reduced on the basis of unprompted disclosures.
6
A case involves prompted disclosures where any of the standard offshore tax penalties to which the asset-based penalty relates was reduced on the basis of a prompted disclosure.
7
Regulations under sub-paragraph (3) are to be made by statutory instrument.
8
A statutory instrument containing regulations under sub-paragraph (3) is subject to annulment in pursuance of a resolution of the House of Commons.
9
Regulations under sub-paragraph (3)—
a
may make different provision for different purposes;
b
may contain supplemental, incidental, consequential, transitional and transitory provision.
Special reduction
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1
If HMRC think it right because of special circumstances, they may reduce the standard amount of the asset-based penalty.
2
In sub-paragraph (1) “special circumstances” does not include—
a
ability to pay, or
b
the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.
3
In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
a
staying a penalty, and
b
agreeing a compromise in relation to proceedings for a penalty.