Finance Bill (HC Bill 10)

(c) each calendar quarter after the period described in paragraph (a) but
not including any time after the monitoring notice mentioned in
subsection (1) ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be
5given—

(a) within the period of 30 days beginning with the end of the relevant
period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the
period of 30 days beginning with the day on which the notice under
10subsection (1) was given if that period would expire at a later time than
the period given by paragraph (a).

(5) A person (“C”) is a client of the intermediary with reference to a relevant period
if during that period—

(a) the intermediary communicated information to C about a monitored
15proposal in the course of a business, and

(b) the communication was made with a view to C, or any other person,
entering into transactions forming part of the proposed arrangements.

(6) But a person is not a client of the intermediary with reference to a relevant
period if—

(a) 20the person has previously been a client of the intermediary with
reference to a different relevant period,

(b) the intermediary complied with the duty in subsection (2) in respect of
the person for that relevant period, and

(c) the information provided as a result of complying with that duty
25remains accurate.

(7) The information mentioned in subsection (2) is—

(a) the person’s name and address, and

(b) such other information about the person as may be prescribed.

254 Enquiry following provision of client information

(1) 30This section applies where—

(a) a person (“the notifying person”) has provided information under
section 252 or 253 about a person who was a client of the notifying
person with reference to a relevant period (within the meaning of the
section concerned) in connection with a particular relevant proposal or
35particular relevant arrangements, and

(b) an authorised officer suspects that a person in respect of whom
information has not been provided under section 252 or 253—

(i) has at any time been, or is likely to be, a party to transactions
implementing the proposal, or

(ii) 40is a party to a transaction forming (in whole or in part)
particular relevant arrangements.

(2) The authorised officer may by notice in writing require the notifying person to
provide prescribed information in relation to any person whom the notifying
person might reasonably be expected to know—

(a) 45has been, or is likely to be, a party to transactions implementing the
proposal, or

(b) is a party to a transaction forming (in whole or in part) the relevant
arrangements.

(3) But a notice under subsection (2) does not impose a requirement on the
notifying person to provide information which the notifying person has
5already provided to an authorised officer under section 252 or 253.

(4) The notifying person must comply with a requirement under subsection (2)
within—

(a) 10 days of the notice, or

(b) such longer period as the authorised officer may direct.

255 10Information required for monitoring compliance with conduct notice

(1) This section applies where a conduct notice has effect in relation to a person.

(2) An authorised officer, or an officer of Revenue and Customs with the approval
of an authorised officer, may (as often as is necessary for the purpose
mentioned below) by notice in writing require the person—

(a) 15to provide information, or

(b) to produce a document,

if the information or document is reasonably required for the purpose of
monitoring whether and to what extent the person is complying with the
conditions in the conduct notice.

256 20Duty to notify HMRC of address

If, on the last day of a calendar quarter, a monitoring notice has effect in
relation to a person (“the monitored promoter”) the monitored promoter must
within 30 days of the end of the calendar quarter inform an authorised officer
of its current address.

257 25Failure to provide information: application to tribunal

(1) This section applies where—

(a) a person (“P”) has provided information or produced a document in
purported compliance with section 248, 250, 251, 252, 253, 254 or 255,
but

(b) 30an authorised officer suspects that P has not provided all the
information or produced all the documents required under the section
concerned.

(2) The authorised officer, or an officer of Revenue and Customs with the approval
of the authorised officer, may apply to the tribunal for an order requiring P
35to—

(a) provide specified information about persons who are its clients for the
purposes of the section to which the application relates,

(b) provide specified information, or information of a specified
description, about a monitored proposal or monitored arrangements,

(c) 40produce specified documents relating to a monitored proposal or
monitored arrangements.

(3) The tribunal may make an order under subsection (2) in respect of information
or documents only if satisfied that the officer has reasonable grounds for
suspecting that the information or documents—

(a) are required under section 248, 250, 251, 252, 253, 254 or 255 (as the case
may be), or

(b) will support or explain information required under the section
concerned.

(4) 5A requirement by virtue of an order under subsection (2) is to be treated as part
of P’s duty under section 248, 250, 251, 252, 253, 254 or 255 (as the case may be).

(5) Information or a document required as a result of subsection (2) must be
provided, or the document produced, within the period of 10 days beginning
with the day on which the order under subsection (2) was made.

(6) 10An authorised officer may, by direction, extend the 10 day period mentioned
in subsection (5).

258 Duty to provide information to monitored promoter

(1) This section applies where a person has been notified of a promoter reference
number—

(a) 15under section 243 by reason of being a person falling within subsection
(2)(b) of that section, or

(b) under section 244 or 245.

(2) The person notified (“C”) must within 10 days notify the person whose
promoter reference number it is of—

(a) 20C’s national insurance number (if C has one), and

(b) C’s unique tax reference number (if C has one).

(3) If C has neither a national insurance number nor a unique tax reference
number, C must within 10 days inform the person whose promoter reference
number it is of that fact.

(4) 25A unique tax reference number is an identification number allocated to a
person by HMRC.

(5) Subsection (2) or (3) does not impose a duty on C to provide information which
C has already provided to the person whose promoter reference number it is.

Obtaining information and documents: appeals

259 30Appeals against notices imposing information etc requirements

(1) This section applies where a person is given a notice under section 248, 250,
251, 252, 253, 254 or 255.

(2) The person to whom the notice is given may appeal against the notice or any
requirement under the notice.

(3) 35Subsection (2) does not apply—

(a) to a requirement to provide any information or produce any document
that forms part of the person’s statutory records, or

(b) if the tribunal has approved the giving of the notice under section 249.

(4) For the purposes of this section, information or a document forms part of a
40person’s statutory records if it is information or a document which the person
is required to keep and preserve under or by virtue of—

(a) the Taxes Acts, or

(b) any other enactment relating to a tax.

(5) Information and documents cease to form part of a person’s statutory records
when the period for which they are required to be preserved by the enactments
5mentioned in subsection (4) has expired.

(6) Notice of appeal must be given—

(a) in writing to the officer who gave the notice, and

(b) within the period of 30 days beginning with the day on which the notice
was given.

(7) 10The notice of appeal must state the grounds of the appeal.

(8) On an appeal that is notified to the tribunal, the tribunal may—

(a) confirm the notice or a requirement under the notice,

(b) vary the notice or such a requirement, or

(c) set aside the notice or such a requirement.

(9) 15Where the tribunal confirms or varies the notice or a requirement, the person
to whom the notice was given must comply with the notice or requirement—

(a) within such period as is specified by the tribunal, or

(b) if the tribunal does not specify a period, within such period as is
reasonably specified in writing by an officer of Revenue and Customs
20following the tribunal’s decision.

(10) A decision of the tribunal on an appeal under this section is final (despite the
provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act
2007).

(11) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals
25have effect in relation to an appeal under this section.

Obtaining information and documents: supplementary

260 Form and manner of providing information

(1) The Commissioners may specify the form and manner in which information
required to be provided or documents required to be produced by sections 248
30to 257 must be provided or produced if the provision is to be complied with.

(2) The Commissioners may specify that a document must be produced for
inspection—

(a) at a place agreed between the person and an officer of Revenue and
Customs, or

(b) 35at such place (which must not be a place used solely as a dwelling) as
an officer of Revenue and Customs may reasonably specify.

(3) The production of a document in compliance with a notice under this Part is
not to be regarded as breaking any lien claimed on the document.

261 Production of documents: compliance

(1) 40Where the effect of a notice under section 248, 250 or 255 is to require a person
to produce a document, the person may comply with the requirement by

producing a copy of the document, subject to any conditions or exceptions that
may be prescribed.

(2) Subsection (1) does not apply where—

(a) the effect of the notice is to require the person to produce the original
5document, or

(b) an authorised officer, or an officer of Revenue and Customs with the
approval of an authorised officer, subsequently makes a request in
writing to the person for the original document.

(3) Where an officer requests a document under subsection (2)(b), the person to
10whom the request is made must produce the document—

(a) within such period, and

(b) at such time and by such means,

as is reasonably requested by the officer.

262 Exception for certain documents or information

(1) 15Nothing in this Part requires a person to provide or produce—

(a) information that relates to the conduct of a pending appeal relating to
tax or any part of a document containing such information,

(b) journalistic material (as defined in section 13 of the Police and Criminal
Evidence Act 1984) or information contained in such material, or

(c) 20personal records (as defined in section 12 of the Police and Criminal
Evidence Act 1984) or information contained in such records (but see
subsection (2)).

(2) A notice under this Part may require a person—

(a) to produce documents, or copies of documents, that are personal
25records, omitting any information whose inclusion (whether alone or
with other information) makes the original documents personal
records (“personal information”), and

(b) to provide any information contained in such records that is not
personal information.

263 30Limitation on duty to produce documents

Nothing in this Part requires a person to produce a document—

(a) which is not in the possession or power of that person, or

(b) if the whole of the document originates more than 6 years before the
requirement to produce it would, if it were not for this section, arise.

264 35Legal professional privilege

(1) Nothing in this Part requires any person to disclose to HMRC any privileged
information.

(2) “Privileged information” means information with respect to which a claim to
legal professional privilege by the person who would (ignoring the effect of
40this section) be required to disclose it, could be maintained in legal
proceedings.

(3) In the case of legal proceedings in Scotland, the reference in subsection (2) to
legal professional privilege is to be read as a reference to confidentiality of
communications.

265 Tax advisers

(1) 5This section applies where a notice is given under section 251(4) or (5) and the
person to whom the notice is given is a tax adviser.

(2) The notice does not require a tax adviser—

(a) to provide information about relevant communications, or

(b) to produce documents which are the tax adviser’s property and consist
10of relevant communications.

(3) Subsection (2) does not have effect in relation to—

(a) information explaining any information or document which the person
to whom the notice is given has, as tax accountant, assisted any person
in preparing for, or delivering to, HMRC, or

(b) 15a document which contains such information.

(4) But subsection (2) is not disapplied by subsection (3) if the information in
question has already been provided, or a document containing the information
has already been produced, to an officer of Revenue and Customs.

(5) In this section—

• 20“relevant communications” means communications between the tax
  adviser and—

  (a)

  a person in relation to whose tax affairs the tax adviser has been
  appointed, or

  (b)

  any other tax adviser of such a person,

  25the purpose of which is the giving or obtaining of advice about any of
  those tax affairs, and

• “tax adviser” means a person appointed to give advice about the tax
  affairs of another person (whether appointed directly by that person or
  by another tax adviser of that person).

266 30Confidentiality

(1) No duty of confidentiality or other restriction on disclosure (however
imposed) prevents the voluntary disclosure by a relevant client or a relevant
intermediary to HMRC of information or documents about—

(a) a monitored promoter, or

(b) 35relevant proposals or relevant arrangements in relation to which a
monitored promoter is a promoter.

(2) “Relevant client” means a person in relation to whom the monitored promoter
mentioned in subsection (1)(a) or (b)—

(a) has made a firm approach in relation to a relevant proposal with a view
40to making the proposal available for implementation by that person or
another person;

(b) has made a relevant proposal available for implementation by that
person;

(c) took part in the organisation or management of relevant arrangements
45entered into by that person.

(3) “Relevant intermediary” means a person who is an intermediary in relation to
a relevant proposal in relation to which the monitored promoter mentioned in
subsection (1)(a) or (b) is a promoter.

(4) The relevant proposal or relevant arrangements mentioned in subsection (2) or
5(3) need not be the relevant proposals or relevant arrangements to which the
disclosure relates.

Penalties

267 Penalties

Schedule 31 contains provision about penalties for failure to comply with
10provisions of this Part.

268 Failure to comply with Part 7 of the Finance Act 2004

In section 98C of TMA 1970 (notification under Part 7 of FA 2004), after
subsection (2E) insert—

“(2EA) Where a person fails to comply with—

(a) 15section 309 of that Act and the promoter for the purposes of that
section is a monitored promoter for the purposes of Part 5 of the
Finance Act 2014, or

(b) section 310 of that Act and the arrangements for the purposes of
that section are arrangements of such a monitored promoter,

20then for the purposes of section 118(2) of this Act legal advice which the
person took into account is to be disregarded in determining whether
the person had a reasonable excuse, if the advice was given or procured
by that monitored promoter.

(2EB) In determining for the purpose of section 118(2) of this Act whether or
25not a person who is a monitored promoter within the meaning of Part
5 of the Finance Act 2014 had a reasonable excuse for a failure to do
anything required to be done under a provision mentioned in
subsection (2), reliance on legal advice is to be taken automatically not
to constitute a reasonable excuse if either—

(a) 30the advice was not based on a full and accurate description of
the facts, or

(b) the conclusions in the advice that the person relied on were
unreasonable.”

269 Limitation of defence of reasonable care

(1) 35 Subsection (2) applies where—

(a) a person gives HMRC a document of a kind listed in the Table in
paragraph 1 of Schedule 24 to FA 2007 (penalties for providing
inaccurate documents to HMRC), and

(b) the document contains an inaccuracy.

(2) 40In determining whether or not the inaccuracy was careless for the purposes of
paragraph 3(1)(a) of Schedule 24 to FA 2007, reliance by the person on legal
advice relating to relevant arrangements in relation to which a monitored

promoter is a promoter is to be disregarded if the advice was given or procured
by a person who was a monitored promoter in relation to the arrangements.

270 Extended time limit for assessment

(1) In section 36 of TMA 1970 (loss of tax brought about carelessly or deliberately),
5in subsection (1A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “, or

(d) attributable to arrangements which were expected to
give rise to a tax advantage in respect of which the
10person was under an obligation to notify the
Commissioners for Her Majesty’s Revenue and
Customs under section 246 of the Finance Act 2014 (duty
to notify Commissioners of promoter reference number)
but failed to do so.”

(2) 15In paragraph 12B of Schedule 2 to OTA 1975 (extended time limits for
assessment of petroleum revenue tax)—

(a) in sub-paragraph (1), after “sub-paragraph (2)” insert “and (2A)”,

(b) after sub-paragraph (2) insert—

“(2A) In a case involving a relevant situation brought about by
20arrangements which were expected to give rise to a tax
advantage in respect of which a participator (or a person
acting on behalf of a participator) was under an obligation to
notify the Board under section 246 of the Finance Act 2014
(duty to notify Commissioners of promoter reference
25number) but failed to do so, an assessment (or an amendment
of an assessment) on the participator may be made at any
time not more than 20 years after the end of the relevant
chargeable period.”,

(c) in sub-paragraph (5), for “or (2)” substitute “, (2) or (2A)”, and

(d) 30in sub-paragraph (6), for “or (2)” substitute “, (2) or (2A)”.

(3) In section 240 of IHTA 1984 (underpayments)—

(a) in subsection (3) for “and (5)” substitute “to (5A)”,

(b) in subsection (5), for “those dates” substitute “the dates in subsection
(2)(a) and (b)”,

(c) 35after subsection (5) insert—

“(5A) Proceedings in a case involving a loss of tax attributable to
arrangements which were expected to give rise to a tax
advantage in respect of which a person liable for the tax was
under an obligation to make a report under section 246 of the
40Finance Act 2014 (duty to notify Commissioners of promoter
reference number) but failed to do so, may be brought at any
time not more than 20 years after the later of the dates in
subsection (2)(a) and (b).”, and

(d) in subsection (8), for “, (5) and (6)” substitute “to (6)”.

(4) 45In paragraph 46 of Schedule 18 to FA 1998 (general time limits for assessments
to corporation tax), in sub-paragraph (2A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “, or

(d) attributable to arrangements which were expected to
give rise to a tax advantage in respect of which the
company was under an obligation to notify the
5Commissioners for Her Majesty’s Revenue and
Customs under section 246 of the Finance Act 2014
(duty to notify Commissioners of promoter reference
number) but failed to do so.”

(5) In paragraph 31 of Schedule 10 to FA 2003 (time limit for assessment of stamp
10duty land tax), in sub-paragraph (2A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “, or

(d) attributable to arrangements which were expected to
give rise to a tax advantage in respect of which the
15person was under an obligation to notify the
Commissioners for Her Majesty’s Revenue and
Customs under section 246 of the Finance Act 2014
(duty to notify Commissioners of promoter reference
number) but failed to do so.”

(6) 20In paragraph 25 of Schedule 33 to FA 2013 (time limit for assessment: annual
tax on enveloped dwellings), in sub-paragraph (4)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “, or

(d) attributable to arrangements which were expected to
25give rise to a tax advantage in respect of which the
person was under an obligation to notify the
Commissioners for Her Majesty’s Revenue and
Customs under section 246 of FA 2014 (duty to notify
Commissioners of promoter reference number) but
30failed to do so.”

Offences

271 Offence of concealing etc documents

(1) A person is guilty of an offence if—

(a) the person is required to produce a document by a notice given under
35section 248,

(b) the tribunal approved the giving of the notice under section 249, and

(c) the person conceals, destroys or otherwise disposes of, or arranges for
the concealment, destruction or disposal of, that document.

(2) Subsection (1) does not apply if the person acts after the document has been
40produced to an officer of Revenue and Customs in accordance with section 248,
unless the officer has notified the person in writing that the document must
continue to be available for inspection (and has not withdrawn the
notification).

(3) Subsection (1) does not apply, in a case to which section 261(1) applies, if the
45person acts after the end of the expiry of 6 months beginning with the day on
which a copy of the document was produced in accordance with that section

unless, before the expiry of that period, an officer of Revenue and Customs
makes a request for the original document under section 261(2)(b).

272 Offence of concealing etc documents following informal notification

(1) A person is guilty of an offence if the person conceals, destroys or otherwise
5disposes of, or arranges for the concealment, destruction or disposal of, a
document after an officer of Revenue and Customs has informed the person in
writing that—

(a) the document is, or is likely, to be the subject of a notice under section
248, and

(b) 10the officer of Revenue and Customs intends to seek the approval of the
tribunal to the giving of the notice.

(2) A person is not guilty of an offence under this section if the person acts after—

(a) at least 6 months has expired since the person was, or was last,
informed as described in subsection (1), or

(b) 15a notice has been given to the person under section 248, requiring the
document to be produced.

273 Penalties for offences

(1) A person who is guilty of an offence under section 271 or 272 is liable—

(a) on summary conviction, to—

(i) 20in England and Wales, a fine, or

(ii) in Scotland or Northern Ireland, a fine not exceeding the
statutory maximum, or

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

(2) 25In relation to an offence committed before section 85(1) of the Legal Aid,
Sentencing and Punishment of Offenders Act 2012 comes into force, subsection
(1)(a)(i) has effect as if the reference to “a fine” were a reference to “a fine not
exceeding the statutory maximum”.

Supplemental

274 30Partnerships

Schedule 32 contains provision about the application of this Part to
partnerships.

275 Regulations under this Part

(1) Regulations under this Part are to be made by statutory instrument.

(2) 35Apart from an instrument to which subsection (3) applies, a statutory
instrument containing regulations made under this Part is subject to
annulment in pursuance of a resolution of the House of Commons.

(3) A statutory instrument containing (whether alone or with other provision)
regulations made under—

(a) 40section 231(7),

(b) paragraph 14 of Schedule 30,