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Finance (No. 3) BillPage 380

(d) VAT,

(e) insurance premium tax,

(f) inheritance tax,

(g) stamp duty land tax,

(h) 5stamp duty reserve tax,

(i) petroleum revenue tax,

(j) aggregates levy,

(k) climate change levy,

(l) landfill tax, and

(m) 10relevant foreign tax.

(2) “Corporation tax” includes any amount assessable or chargeable as if it were
corporation tax.

(3) VAT” means—

(a) value added tax charged in accordance with VATA 1994, and

(b) 15value added tax charged in accordance with the law of another
member State,

and includes any amount that is recoverable under paragraph 5(2) of
Schedule 11 to VATA 1994 (amounts shown on invoices as VAT).

(4) “Relevant foreign tax” means—

(a) 20a tax of a member State, other than the United Kingdom, which is
covered by the provisions for the exchange of information under the
Directive of the Council of the European Communities No. 77/799/
EEC (as amended from time to time), and

(b) any tax or duty which is imposed under the law of a territory in
25relation to which arrangements having effect by virtue of section 173
of FA 2006 (international tax enforcement arrangements) have been
made and which is covered by the arrangements.

Statutory records

46 (1) For the purposes of this Schedule data form part of a data-holder’s statutory
30records if they are data that the data-holder is required to keep and preserve
under or by virtue of any enactment relating to tax.

(2) Data cease to form part of a data-holder’s statutory records when the period
for which the data are required to be preserved under or by virtue of that
enactment has expired.

35General interpretation

47 In this Schedule—

48 A reference in this Schedule to providing data includes—

(a) preparing and delivering a return, statement or declaration, and

(b) providing documents.

49 (1) A reference in this Schedule to the carrying on of a business also includes—

(a) 35the letting of property,

(b) the activities of a charity, and

(c) the activities of a government department, a local authority, a local
authority association or any other public authority.

(2) “Local authority association” has the meaning given in section 1000 of ITA
402007.

Crown application

50 This Schedule applies to the Crown but not to Her Majesty in Her private
capacity (within the meaning of the Crown Proceedings Act 1947).

Finance (No. 3) BillPage 382

Part 6 Consequential provisions

TMA 1970

51 (1) TMA 1970 is amended as follows.

(2) 5Omit—

(a) section 13 (persons in receipt of taxable income belonging to others),

(b) section 14 (return of lodgers and inmates),

(c) section 15 (return of employees’ earnings etc),

(d) section 15A (non-resident’s staff are UK client’s employees for
10section 15 purposes),

(e) section 16 (fees, commissions etc),

(f) section 16A (agency workers),

(g) section 17 (interest paid or credited by banks, building societies etc
without deduction of income tax),

(h) 15section 18 (interest paid without deduction of income tax),

(i) section 18A (other payments and licences etc),

(j) section 19 (information for purposes of charge on profits of UK
property businesses or under Schedule A),

(k) section 21 (stock jobbers’ transactions),

(l) 20section 23 (power to obtain copies of registers of securities),

(m) section 24 (power to obtain information as to income from securities),

(n) section 25 (issuing houses, stockbrokers, auctioneers etc),

(o) section 26 (nominee shareholders),

(p) section 27 (settled property),

(q) 25section 76 (protection for certain trustees, agents and receivers), and

(r) section 77I (information from petroleum licence-holders).

(3) In the Table in section 98 (special returns etc), omit the entries (so far as they
continue to have effect) relating to—

(a) section 77I of TMA 1970,

(b) 30paragraph 2 of Schedule 15 to FA 1973,

(c) sections 42, 217(4), 226(4) and 768(9) of ICTA,

(d) paragraph 3 of Schedule 12 to FA 1989,

(e) sections 302B and 647 of ITTOIA 2005,

(f) section 241 of CTA 2009, and

(g) 35sections 728, 1046(5) to (7) and 1097(1) and (2) of CTA 2010.

(4) In that Table—

(a) for the entry relating to section 31 of CTA 2010 substitute the
following entry—

(b) 40for the entry relating to section 465 of CTA 2010 substitute the
following entry—

(c) for the entry relating to section 1102 of CTA 2010 substitute the
following entry—

Finance (No. 3) BillPage 383

(5) In section 103ZA (disapplication of sections 100 to 103)—

(a) omit “or” at the end of paragraph (d), and

(b) at the end of paragraph (e) insert , or

(f) Schedule 23 to FA 2011 (data-gathering powers).

5FA 1973

52 In Schedule 15 to FA 1973 (territorial extension of charge to tax:
supplementary provisions), omit paragraph 2 so far as it continues to have
effect (see section 381 of TIOPA 2010).

FA 1974

53 (1) 10In section 24 of FA 1974 (returns of persons treated as employees), for the
words from “section 15” to the end substitute “any notice given under
section 8 of the Taxes Management Act 1970 to the person performing the
duties (P) may require a return of P’s income to include particulars of any
general earnings paid to P.”

(2) 15Sub-paragraph (1) applies so far as section 24 of FA 1974 continues to have
effect (see section 381 of TIOPA 2010).

FA 1986

54 In Schedule 18 to FA 1986 (securities: other provisions), omit paragraph 8(4)
and (5).

20ICTA

55 Omit the following provisions of ICTA so far as they continue to have effect
(see section 1184 of CTA 2010 and section 381 of TIOPA 2010)—

(a) section 42(7) (information required to decide whether to give
provisional notice of determination),

(b) 25section 217(4) (information about person for whom chargeable
payment is received),

(c) section 226(4) (information about purchase by unquoted trading
company of its own shares),

(d) section 768(9) (information about change in ownership of company:
30disallowance of trading losses), and

(e) section 816(3) (disapplication of bank exemption).

FA 1989

56 In Schedule 12 to FA 1989 (close companies), omit paragraph 3 so far as it
continues to have effect (see section 1184 of CTA 2010).

35ITTOIA 2005

57 (1) ITTOIA 2005 is amended as follows.

(2) In Chapter 4 of Part 3 (profits of property businesses: lease premiums etc),
omit section 302B(3) and (4).

(3) In Chapter 5 of Part 5 (settlements: amounts treated as income of settlor),
40omit section 647.

Finance (No. 3) BillPage 384

FA 2005

58 In Schedule 2 to FA 2005 (alternative finance arrangements: further
provisions), omit paragraph 2 so far as it continues to have effect (see section
1329 of CTA 2009).

5CRCA 2005

59 In Schedule 2 to CRCA 2005 (functions of Commissioners and officers:
restrictions etc), omit paragraph 2.

FA 2008

60 FA 2008 is amended as follows.

61 10In section 39 (dormant bank and building society accounts), in subsection
(1), omit paragraph (a).

62 (1) Schedule 36 (information and inspection powers) is amended as follows.

(2) Omit paragraph 34A.

(3) In paragraph 61A (involved third parties)—

(a) 15in sub-paragraph (2), omit ““relevant information”,”,

(b) in each entry in the second column of the Table, for “Information and
documents” substitute “Documents”, and

(c) accordingly, in the heading of that column, omit “information and
relevant”.

20CTA 2009

63 In Chapter 4 of Part 4 of CTA 2009 (profits of property businesses: lease
premiums etc), omit section 241(3) and (4).

CTA 2010

64 (1) CTA 2010 is amended as follows.

(2) 25Omit—

(a) section 31(1) (companies with small profits: power to obtain
information),

(b) section 465(1) (close companies: power to obtain information),

(c) section 728 (provision of information about ownership of shares etc),

(d) 30section 1046(5) to (7) (information about purchase by unquoted
trading company of its own shares),

(e) section 1097 (information about person for whom chargeable
payment is received), and

(f) section 1102(2) (non-qualifying distributions etc: additional
35information).

(3) In section 1109 (tax credits for certain recipients of exempt qualifying
distributions), in subsection (4), for “1102(2)” substitute “1102(3)”.

Finance (No. 3) BillPage 385

Part 7 Application of this Schedule

65 (1) This Schedule—

(a) comes into force on 1 April 2012, and

(b) 5applies from then on to relevant data with a bearing on any period
(whether before, on or after that date), subject to paragraph 3(2).

(2) The provisions repealed or otherwise amended by Part 6 of this Schedule
continue to have effect in relation to notices given, or requests made,
pursuant to any of the repealed provisions before 1 April 2012 as if the
10repeals and other amendments had not been made.

Section 86(2)

SCHEDULE 24 Amendments of Schedule 36 FA 2008

1 Schedule 36 to FA 2008 (information and inspection powers) is amended as
follows.

2 (1) 15Paragraph 5 (power to obtain information and documents about persons
whose identity is not known) is amended as follows.

(2) In sub-paragraph (2), omit “UK”.

(3) In sub-paragraph (4)—

(a) in paragraph (b), for the words from “the Taxes Acts” to the end
20substitute “the law (including the law of a territory outside the
United Kingdom) relating to tax,” and

(b) in paragraph (c), omit “UK”.

(4) Omit sub-paragraph (5).

(5) The amendments made by this paragraph—

(a) 25come into force on 1 April 2012, and

(b) apply from then on in relation to tax regardless of when the tax
became due (whether before, on or after that date).

3 (1) Paragraph 40A (penalties for inaccurate information and documents) is
amended as follows.

(2) 30In sub-paragraph (1)(b), for “A or B” substitute “A, B or C”.

(3) After sub-paragraph (3) insert—

(3A) Condition B is that the person knows of the inaccuracy at the time
the information is provided or the document produced but does
not inform HMRC at that time.

(4) 35In sub-paragraph (4), for “B” substitute “C”.

(5) The amendments made by this paragraph have effect in relation to any
inaccuracy in information provided, or in documents produced, on or after
1 April 2012.

Finance (No. 3) BillPage 386

4 (1) After paragraph 49 insert—

Increased daily default penalty

49A (1) This paragraph applies if—

(a) a penalty under paragraph 40 is assessed under paragraph
546 in respect of a person’s failure to comply with a notice
under paragraph 5,

(b) the failure continues for more than 30 days beginning with
the date on which notification of that assessment was
issued, and

(c) 10the person has been told that an application may be made
under this paragraph for an increased daily penalty to be
imposed.

(2) If this paragraph applies, an officer of Revenue and Customs may
make an application to the tribunal for an increased daily penalty
15to be imposed on the person.

(3) If the tribunal decides that an increased daily penalty should be
imposed, then for each applicable day (see paragraph 49B) on
which the failure continues—

(a) the person is not liable to a penalty under paragraph 40 in
20respect of the failure, and

(b) the person is liable instead to a penalty under this
paragraph of an amount determined by the tribunal.

(4) The tribunal may not determine an amount exceeding £1,000 for
each applicable day.

(5) 25But subject to that, in determining the amount the tribunal must
have regard to—

(a) the likely cost to the person of complying with the notice,

(b) any benefits to the person of not complying with it, and

(c) any benefits to anyone else resulting from the person’s
30non-compliance.

(6) Paragraph 41 applies in relation to the sum specified in sub-
paragraph (4) as it applies in relation to the sums mentioned in
paragraph 41(1).

49B (1) If a person becomes liable to a penalty under paragraph 49A,
35HMRC must notify the person.

(2) The notification must specify the day from which the increased
penalty is to apply.

(3) That day and any subsequent day is an “applicable day” for the
purposes of paragraph 49A(3).

49C (1) 40A penalty under paragraph 49A must be paid before the end of the
period of 30 days beginning with the date on which the
notification under paragraph 49B is issued.

(2) A penalty under paragraph 49A may be enforced as if it were
income tax charged in an assessment and due and payable.

Finance (No. 3) BillPage 387

(2) The amendment made by this paragraph has effect in relation to failures to
comply with a notice under paragraph 5 that begin on or after 1 April 2012.

5 (1) Paragraph 50 (tax-related penalty) is amended as follows.

(2) In sub-paragraph (1)(d), omit “(within the meaning of paragraph 46)”.

(3) 5After sub-paragraph (6) insert—

(7) In sub-paragraph (1)(d) “the relevant date” means—

(a) in a case involving an information notice against which a
person may appeal, the latest of—

(i) the date on which the person became liable to the
10penalty under paragraph 39,

(ii) the end of the period in which notice of an appeal
against the information notice could have been
given, and

(iii) if notice of such an appeal is given, the date on
15which the appeal is determined or withdrawn, and

(b) in any other case, the date on which the person became
liable to the penalty under paragraph 39.

(4) The amendments made by this paragraph have effect where a person
becomes liable to a penalty under paragraph 39 of Schedule 36 to FA 2008 on
20or after the day on which this Act is passed.

6 In paragraph 61A (involved third parties), in the first column of item 11 of
the Table, after “receiving” insert “supplies of”.

Section 87

SCHEDULE 25 Mutual assistance for recovery of taxes etc

25MARD

1 In this Schedule “MARD” means Council Directive 2010/24/EU.

HMRC functions

2 (1) The Commissioners are a competent authority in the United Kingdom for
the purposes of all matters under MARD other than excluded matters.

(2) 30HMRC is designated as the central liaison office in the United Kingdom for
the purposes of all matters under MARD other than excluded matters.

(3) Excluded matters are—

(a) requests for assistance in another member State in connection with a
relevant devolved tax, and

(b) 35requests for assistance in the United Kingdom in connection with an
agricultural levy payable in another member State, where the
assistance requires steps to be taken in or in relation to Scotland.

(4) “Relevant devolved tax” means—

(a) an agricultural levy recoverable by the Scottish Ministers under
40section 6(4) of the European Communities Act 1972, and

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(b) a tax or duty (other than an agricultural levy) imposed in Scotland or
Northern Ireland, if—

(i) in the case of Scotland, provision for the imposition of it in an
Act of the Scottish Parliament is within the legislative
5competence of the Scottish Parliament, or

(ii) in the case of Northern Ireland, it is a transferred matter
within the meaning of the Northern Ireland Act 1998.

Exchange of information

3 (1) No obligation of secrecy imposed by statute or otherwise precludes a public
10authority (or anyone acting on behalf of a public authority) from disclosing
information if the disclosure is made for the purpose of giving effect, or
enabling effect to be given, to MARD or a MARD-related instrument.

(2) Sub-paragraph (1) applies, in particular, to any disclosure (to persons in the
United Kingdom or elsewhere) in connection with a request or proposed
15request by or on behalf of an applicant authority of any member State for
assistance in accordance with MARD.

(3) Sub-paragraph (2) is not to be taken to limit sub-paragraph (1).

(4) Sub-paragraph (1) does not apply to a disclosure relating to any excluded
matters as defined in paragraph 2(3).

20Onward disclosure of information received from HMRC

4 (1) A public authority commits an offence if—

(a) it discloses relevant information, and

(b) the disclosure is not permitted by sub-paragraph (3).

(2) “Relevant information” is information that—

(a) 25the public authority has received from HMRC by virtue of paragraph
3, and

(b) relates to a person whose identity is specified in the disclosure or can
be deduced from it.

(3) A disclosure is permitted by this sub-paragraph if it is made—

(a) 30in accordance with paragraph 3,

(b) in accordance with another enactment (or an instrument made under
an enactment) permitting the disclosure,

(c) in pursuance of an order of a court,

(d) for the purposes of civil proceedings (whether or not within the
35United Kingdom),

(e) for the purposes of a criminal investigation or criminal proceedings
(whether or not within the United Kingdom),

(f) with the consent of each person to whom the information relates, or

(g) with the consent of the Commissioners.

(4) 40Sub-paragraph (1) applies to each of the following as it applies to a public
authority—

(a) an employee or agent of the public authority;

(b) anyone providing services or exercising functions on behalf of the
public authority;

Finance (No. 3) BillPage 389

(c) anyone authorised by the public authority to receive information on
its behalf.

5 (1) It is a defence for a person charged with an offence under paragraph 4 to
prove that the person reasonably believed—

(a) 5that the disclosure was lawful, or

(b) that the information had already and lawfully been made available
to the public.

(2) A person guilty of an offence under paragraph 4 is liable—

(a) on conviction on indictment, to imprisonment for a term not
10exceeding 2 years or a fine, or both;

(b) on summary conviction, to imprisonment for a term not exceeding 12
months or a fine not exceeding the statutory maximum, or both.

(3) A prosecution for an offence under paragraph 4 may be instituted in
England and Wales only—

(a) 15by the Director of Revenue and Customs Prosecution, or

(b) with the consent of the Director of Public Prosecutions.

(4) A prosecution for an offence under paragraph 4 may be instituted in
Northern Ireland only—

(a) by the Commissioners, or

(b) 20with the consent of the Director of Public Prosecutions for Northern
Ireland.

(5) In the application of this paragraph—

(a) in England and Wales, in relation to an offence committed before the
commencement of section 154(1) of the Criminal Justice Act 2003, or

(b) 25in Northern Ireland,

the reference in sub-paragraph (2)(b) to 12 months is to be read as a reference
to 6 months.

Enforcement of foreign claims in the UK

6 (1) This paragraph applies if an applicant authority of another member State
30makes a request in accordance with MARD for the recovery in the United
Kingdom of a claim.

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