Finance Bill

Session 2013 - 14
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Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 45 — Controlled foreign companies
585

(d)
the loan—
(i)
was made by a person who was not a member of the
CFC group, and
(ii)
was not made (wholly or partly nor directly or
indirectly) out of funds or other assets provided by a
5
member of the CFC group.”
20    (1)
Section 371IE (matched interest) is amended as follows.
      (2)
In subsection (1)(d)(ii) after “include” insert “some or all of”.
      (3)
After subsection (7) insert—
“(7A)
In subsection (6) the reference to the leftover profits is to those profits
10
so far as they would be included in the relevant finance profits (see
section 314A(1)(d)).”
Commencement and transitional provision
21
The amendments made by this Schedule are treated as having come into
force on 1 January 2013.
15
22    (1)
Section 371CE of TIOPA 2010 (as amended by paragraph 17 above) applies
for accounting periods of CFCs beginning before 20 March 2013 with the
modifications set out in this paragraph.

References below to subsections are to subsections of section 371CE.
Accounting periods ending before 20 March 2013
20
      (2)
For accounting periods ending before 20 March 2013, subsection (4) applies
as if paragraph (b) were omitted.
Accounting periods ending on or after 20 March 2013
      (3)
The following sub-paragraphs apply for accounting periods ending on or
after 20 March 2013.
25
      (4)
A notice may be given under subsection (2)(b) even though the requirement
of subsection (2)(a) is not met.
      (5)
If a notice is given under subsection (2)(b) in a case where the requirement
of subsection (2)(a) is not met, the CFC’s trading finance profits are to be
apportioned on a just and reasonable basis between—
30
(a)
the part of the accounting period falling before 20 March 2013
(“period A”), and
(b)
the remaining part of the accounting period (“period B”).
      (6)
So far as the CFC’s trading finance profits are apportioned to period A, they
are to be treated as non-trading finance profits if the CFC is a group treasury
35
company in period A (and subsection (3) applies to them accordingly).
      (7)
For the purpose of determining if the CFC is a group treasury company in
period A, subsection (4) applies—
(a)
as if references to the accounting period were to period A, and
(b)
as if paragraph (b) were omitted.
40

Finance Bill
Schedule 46 — Proceeds of crime: powers of officers of Revenue and Customs
586

      (8)
So far as the CFC’s trading finance profits are apportioned to period B, they
are to be treated as non-trading finance profits if the CFC is a group treasury
company in period B (and subsection (3) applies to them accordingly).
      (9)
For the purpose of determining if the CFC is a group treasury company in
period B, subsection (4) applies as if references to the accounting period
5
were to period B.
Schedule 46
Section 221

Proceeds of crime: powers of officers of Revenue and Customs
Proceeds of Crime Act 2002
1
The Proceeds of Crime Act 2002 is amended in accordance with paragraphs
10
2 to 20.
2     (1)
Section 289 (searches) is amended as follows.
      (2)
In subsections (1), (1A)(a) and (2), for “a customs officer” substitute “an
officer of Revenue and Customs”.
      (3)
In subsections (1C) and (1D), for “customs officer” substitute “officer of
15
Revenue and Customs”.
      (4)
After subsection (5)(b) insert—
“(ba)
are exercisable by an officer of Revenue and Customs only so
far as the officer is exercising a function relating to a matter
other than an excluded matter,”.
20
      (5)
After subsection (5) insert—
“(5A)
The reference in subsection (5)(ba) to an excluded matter is to a
matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7,
10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue
and Customs Act 2005.”
25
3
In section 290 (prior approval for search)—
(a)
in subsection (4)(a), for “a customs officer, a customs officer”
substitute “an officer of Revenue and Customs, such an officer”, and
(b)
in subsection (6), for “customs officer” substitute “officer of Revenue
and Customs”.
30
4
In section 291(2) (report on exercise of powers), for “customs officer”
substitute “officer of Revenue and Customs”.
5
In section 292 (code of practice)—
(a)
in subsection (1), for “customs officers” substitute “officers of
Revenue and Customs”, and
35
(b)
in subsection (6), for “a customs officer” substitute “an officer of
Revenue and Customs”.
6     (1)
Section 294 (seizure of cash) is amended as follows.
      (2)
In subsections (1) and (2), for “A customs officer” substitute “An officer of
Revenue and Customs”.
40

Finance Bill
Schedule 46 — Proceeds of crime: powers of officers of Revenue and Customs
587

      (3)
After subsection (2) insert—
“(2A)
The powers conferred by this section are exercisable by an officer of
Revenue and Customs only so far as the officer is exercising a
function relating to a matter other than an excluded matter.
(2B)
But the powers may be exercised by the officer in reliance on a
5
suspicion that relates to an excluded matter.
(2C)
The reference in subsection (2A) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
Customs Act 2005.”
10
7
In section 295(1) (detention of seized cash), for “customs officer” substitute
“officer of Revenue and Customs”.
8
In section 296(2) (interest on cash), for “customs officer” substitute “officer of
Revenue and Customs”.
9
In section 297(4) (release of detained cash), for “A customs officer” substitute
15
“An officer of Revenue and Customs”.
10
In section 302(6) (compensation), for “a customs officer” substitute “an
officer of Revenue and Customs”.
11
In section 351(5) (person making application to vary or discharge order)—
(a)
for “a customs officer” substitute “an officer of Revenue and
20
Customs”, and
(b)
for “customs officer” substitute “officer of Revenue and Customs”.
12    (1)
Section 352 (search and seizure warrants) is amended as follows.
      (2)
In subsection (5)—
(a)
omit paragraph (a), and
25
(b)
in paragraph (c), at the end insert “, a confiscation investigation or a
money laundering investigation”.
      (3)
In subsection (7), omit “(a) or”.
13    (1)
Section 353 (requirements where production order not available) is
amended as follows.
30
      (2)
In subsection (10)—
(a)
omit paragraph (a), and
(b)
in paragraph (c), at the end insert “, a confiscation investigation or a
money laundering investigation”.
      (3)
In subsection (11), omit “(a) or”.
35
14    (1)
Section 369 (customer information orders: supplementary provisions) is
amended as follows.
      (2)
In subsection (5)—
(a)
for “a customs officer” substitute “an officer of Revenue and
Customs”, and
40
(b)
for “customs officer” substitute “officer of Revenue and Customs”.

Finance Bill
Schedule 46 — Proceeds of crime: powers of officers of Revenue and Customs
588

      (3)
In subsection (7), for “a customs officer” substitute “an officer of Revenue
and Customs”.
15
In section 375(4) (account monitoring orders: supplementary provisions)—
(a)
for “a customs officer” substitute “an officer of Revenue and
Customs”, and
5
(b)
for “customs officer” substitute “officer of Revenue and Customs”.
16
After section 375 insert—
“Officers of Revenue and Customs
375A
Restriction on exercise of certain powers conferred on officers of
Revenue and Customs
10
(1)
This section applies to the powers conferred on an officer of Revenue
and Customs which are exercisable in connection with—
(a)
a production order made or to be made in relation to a
confiscation investigation or a money laundering
investigation,
15
(b)
a search and seizure warrant issued or to be issued in relation
to a confiscation investigation or a money laundering
investigation,
(c)
a customer information order, and
(d)
an account monitoring order.
20
(2)
The powers are exercisable by the officer only so far as the officer is
exercising a function relating to a matter other than an excluded
matter.
(3)
The reference in subsection (2) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
25
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
Customs Act 2005.”
17
In section 377(1) (persons subject to code of practice), for paragraph (e)
substitute—
“(e)
officers of Revenue and Customs.”
30
18
In section 378 (officers)—
(a)
in subsection (1), for paragraph (d) substitute—
“(d)
an officer of Revenue and Customs.”,
(b)
in subsections (2)(c) and (6)(b), for “a customs officer” substitute “an
officer of Revenue and Customs”, and
35
(c)
in subsection (4), for paragraph (c) substitute—
“(c)
an officer of Revenue and Customs.”
19
After section 408 insert—
“Officers of Revenue and Customs
408A
Restriction on exercise of certain powers conferred on officers of
40
Revenue and Customs
(1)
This section applies to the powers conferred on an officer of Revenue
and Customs which are exercisable in connection with—

Finance Bill
Schedule 46 — Proceeds of crime: powers of officers of Revenue and Customs
589

(a)
a production order made or to be made in relation to a
confiscation investigation or a money laundering
investigation,
(b)
a search warrant issued or to be issued in relation to a
confiscation investigation or a money laundering
5
investigation,
(c)
a customer information order, and
(d)
an account monitoring order.
(2)
The powers are exercisable by the officer only so far as the officer is
exercising a function relating to a matter other than an excluded
10
matter.
(3)
The reference in subsection (2) to an excluded matter is to a matter
specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12
and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and
Customs Act 2005.”
15
20
In section 412 (interpretation), in the entry relating to the meaning of
references to a “constable”, for “a customs and excise officer” substitute “an
officer of Revenue and Customs”.
Commissioners for Revenue and Customs Act 2005
21
In Schedule 2 to the Commissioners for Revenue and Customs Act 2005
20
(restrictions on functions of Commissioner and officers), omit—
(a)
paragraphs 13 and 13A, and
(b)
the italic heading immediately preceding those paragraphs.
Relationship of provisions of 2005 Act with provisions of 2002 Act
22
Nothing in section 6 or 7 of the Commissioners for Revenue and Customs
25
Act 2005 (initial functions) restricts the functions in connection with which
officers of Revenue and Customs may exercise a power under—
(a)
Chapter 3 of Part 5 of the Proceeds of Crime Act 2002 (as amended
by this Schedule), or
(b)
Chapters 2 and 3 of Part 8 of that Act (as so amended).
30
Consequential amendments
23
In section 80(1) and (3) of the Serious Crime Act 2007 (amendment of
sections 352(5) and 353(10) of the Proceeds of Crime Act 2002), omit
paragraph (a) and the word “and” at the end of that paragraph.
24
In Schedule 7 to the Policing and Crime Act 2009 (minor and consequential
35
amendments), omit paragraph 116.