Notices of Amendments: 22 June 2016                     

8

Finance Bill, continued

Mr Chancellor of the Exchequer

130

Clause  145,  page  199,  line  12,  after “a” insert “pooling notice or”

Mr Chancellor of the Exchequer

131

Clause  145,  page  199,  line  16,  after “6” insert “and Schedule 43B (generic referral

of tax arrangements)”

Mr Chancellor of the Exchequer

132

Clause  145,  page  199,  line  17,  leave out “of binding” and insert “in question (and

accordingly the tax arrangements in question are no longer in the pool)”

Mr Chancellor of the Exchequer

133

Clause  145,  page  199,  line  23,  leave out “notice under paragraph 1” and insert

“pooling notice or notice of binding”

Mr Chancellor of the Exchequer

134

Clause  145,  page  199,  line  26,  leave out “notice under paragraph 1” and insert

“pooling notice or notice of binding”

Mr Chancellor of the Exchequer

135

Clause  145,  page  199,  line  34,  at end insert—

    “( )  

Where a person takes the first step described in sub-paragraph (3)(b), HMRC

may proceed as if the person had not taken the relevant corrective action if the

person fails to enter into the written agreement.”

Mr Chancellor of the Exchequer

136

Clause  145,  page  200,  line  6,  at end insert—

“Corrective action by lead taxpayer

2A         

If the person mentioned in paragraph 1(1) takes the relevant corrective action

(as defined in paragraph 4A of Schedule 43) before the end of the period of 75

days beginning with the day on which the notice mentioned in paragraph 1(1)

was given to that person, the lead arrangements are treated as ceasing to be in

the pool.”

Mr Chancellor of the Exchequer

137

Clause  145,  page  200,  line  9,  leave out “notice of binding” and insert “pooling

notice”

Mr Chancellor of the Exchequer

138

Clause  145,  page  200,  line  10,  leave out from first “arrangements” to “and” in line

11

Notices of Amendments: 22 June 2016                     

9

Finance Bill, continued

Mr Chancellor of the Exchequer

139

Clause  145,  page  200,  line  13,  leave out from “about” to “is” in line 14 and insert

“another set of tax arrangements in the pool (“the referred arrangements”)”

Mr Chancellor of the Exchequer

140

Clause  145,  page  200,  line  16,  leave out “bound” and insert “pooled”

Mr Chancellor of the Exchequer

141

Clause  145,  page  200,  line  17,  at end insert—

    “( )  

No more than one pooled arrangements opinion notice may be given to a

person in respect of the same tax arrangements.”

Mr Chancellor of the Exchequer

142

Clause  145,  page  200,  line  19,  leave out “by virtue of Condition 2 in paragraph 1”

Mr Chancellor of the Exchequer

143

Clause  145,  page  200,  line  21,  leave out “notice of binding” and insert “pooling

notice”

Mr Chancellor of the Exchequer

144

Clause  145,  page  200,  line  22,  leave out “bound” and insert “pooled”

Mr Chancellor of the Exchequer

145

Clause  145,  page  200,  line  25,  leave out “lead” and insert “referred”

Mr Chancellor of the Exchequer

146

Clause  145,  page  200,  line  29,  at end insert—

    “( )  

In relation to a person who is given a notice of binding “bound arrangements

opinion notice” means a written notice which—

(a)    

sets out a report prepared by HMRC of any opinion of the GAAR

Advisory Panel about the counteracted arrangements (see paragraph

1A(1)),

(b)    

explains the person’s right to make representations falling within sub-

paragraph (2), and

(c)    

sets out the period in which those representations may be made.”

Mr Chancellor of the Exchequer

147

Clause  145,  page  200,  line  30,  after “given” and insert “a pooled arrangements

opinion notice or”

Mr Chancellor of the Exchequer

148

Clause  145,  page  200,  leave out lines 35 to 38

Notices of Amendments: 22 June 2016                     

10

Finance Bill, continued

Mr Chancellor of the Exchequer

149

Clause  145,  page  200,  line  40,  leave out “the lead arrangements” and insert—

“(i)    

the referred arrangements (in the case of a pooled

arrangements opinion notice), or

(ii)    

the counteracted arrangements (in the case of a bound

arrangements opinion notice).”

Mr Chancellor of the Exchequer

150

Clause  145,  page  201,  line  3,  leave out from beginning to “paragraph” in line 4 and

insert “any tax arrangements have been placed in a pool by a notice given to a person

under”

Mr Chancellor of the Exchequer

151

Clause  145,  page  201,  line  7,  leave out “the lead arrangements” and insert “any

other arrangements in the pool (the “referred arrangements”)”

Mr Chancellor of the Exchequer

152

Clause  145,  page  201,  line  10,  leave out “lead” and insert “referred”

Mr Chancellor of the Exchequer

153

Clause  145,  page  201,  line  17,  leave out “by virtue of Condition 2 in paragraph 1”

and insert “under paragraph 1A”

Mr Chancellor of the Exchequer

154

Clause  145,  page  201,  line  22,  leave out “lead” and insert “counteracted”

Mr Chancellor of the Exchequer

155

Clause  145,  page  202,  line  25,  leave out from “applies” to end of line 38 and insert

“if—

(a)    

pooling notices given under paragraph 1 of Schedule 43A have placed

one or more sets of tax arrangements in a pool with the lead

arrangements,

(b)    

the lead arrangements (see paragraph 1(1) of Schedule 43A) have

ceased to be in the pool, and

(c)    

no referral under paragraph 5 or 6 of Schedule 43 has been made in

respect of any arrangements in the pool.

      (2)  

A designated HMRC officer may determine that, in respect of each of the tax

arrangements that are in the pool, there is to be given (to the person to whom

the pooling notice in question was given) a written notice of a proposal to make

a generic referral to the GAAR Advisory Panel in respect of the arrangements

in the pool.

      (3)  

Only one determination under sub-paragraph (2) may be made in relation to

any one pool.

    (3A)  

The persons to whom those notices are given are “the notified taxpayers”.”

Notices of Amendments: 22 June 2016                     

11

Finance Bill, continued

Mr Chancellor of the Exchequer

156

Clause  145,  page  203,  leave out lines 1 to 4

Mr Chancellor of the Exchequer

157

Clause  145,  page  203,  line  6,  leave out “representations, and” and insert “a

proposal.”

Mr Chancellor of the Exchequer

158

Clause  145,  page  203,  leave out lines 7 to 16

Mr Chancellor of the Exchequer

159

Clause  145,  page  203,  line  18,  leave out from “given” to end of line 20 and insert

“to propose to HMRC that it—

(a)    

should give T a notice under paragraph 3 of Schedule 43 in respect of

the arrangements to which the notice under paragraph 1 relates, and

(b)    

should not proceed with the proposal to make a generic referral to the

GAAR Advisory Panel in respect of those arrangements.”

Mr Chancellor of the Exchequer

160

Clause  145,  page  203,  leave out lines 21 to 25

Mr Chancellor of the Exchequer

161

Clause  145,  page  203,  line  26,  leave out “representations are made in accordance

with sub-paragraph (2)” and insert “a proposal is made in accordance with sub-paragraph

(1)”

Mr Chancellor of the Exchequer

162

Clause  145,  page  203,  line  27,  leave out “them” and insert “it”

Mr Chancellor of the Exchequer

163

Clause  145,  page  203,  line  28,  leave out from beginning to end of line 22 on page

204

Mr Chancellor of the Exchequer

164

Clause  145,  page  204,  line  26,  leave out “given a notice” and insert “made a

proposal”

Mr Chancellor of the Exchequer

165

Clause  145,  page  204,  line  31,  leave out “gives a notice” and insert “makes a

proposal”

Notices of Amendments: 22 June 2016                     

12

Finance Bill, continued

Mr Chancellor of the Exchequer

166

Clause  145,  page  204,  line  32,  after “must” insert “, after the end of that 30 day

period,”

Mr Chancellor of the Exchequer

167

Clause  145,  page  204,  leave out lines 34 and 35 and insert—

“( )    

give a notice under paragraph 3 of Schedule 43 in respect of one set of

tax arrangements in the relevant pool, or”

Mr Chancellor of the Exchequer

168

Clause  145,  page  204,  leave out lines 37 and 38 and insert “tax arrangements in the

relevant pool”

Mr Chancellor of the Exchequer

169

Clause  145,  page  205,  line  18,  after “which” insert “the designated officer

considers”

Mr Chancellor of the Exchequer

170

Clause  145,  page  207,  line  35,  at end insert—

“( )    

In section 210 (consequential relieving adjustments), in subsection (1)(b), after

“Schedule 43,” insert “paragraph 5 or 6 of Schedule 43A or paragraph 9 of

Schedule 43B,”.”

Mr Chancellor of the Exchequer

171

Clause  145,  page  207,  line  40,  after “1” insert “or 1A”

Mr Chancellor of the Exchequer

172

Clause  145,  page  207,  line  41,  leave out “lead” and insert “referred or (as the case

may be) counteracted”

Mr Chancellor of the Exchequer

173

Clause  145,  page  208,  line  7,  leave out “1(4)” and insert “1A(2)”

Mr Chancellor of the Exchequer

174

Clause  145,  page  208,  line  8,  at end insert—

““pooling notice” has the meaning given by paragraph 1(4) of Schedule

43A;”

Mr Chancellor of the Exchequer

178

Clause  145,  page  208,  line  24,  at end insert—

“(10A)    

Section 10 of the National Insurance Contributions Act 2014 (GAAR to apply to

national insurance contributions) is amended in accordance with subsections

(10B) to (10E).

Notices of Amendments: 22 June 2016                     

13

Finance Bill, continued

(10B)    

In subsection (4), at the end insert “, paragraph 5 or 6 of Schedule 43A to that Act

(pooling of tax arrangements: notice of final decision) or paragraph 9 of Schedule

43B to that Act (generic referral of arrangements: notice of final decision)”.

(10C)    

After subsection (6) insert—

“(6A)    

Where, by virtue of this section, a case falls within paragraph 4A of

Schedule 43 to the Finance Act 2013 (referrals of single schemes:

relevant corrective action) or paragraph 2 of Schedule 43A to that Act

(pooled schemes: relevant corrective action)—

(a)    

the person (“P”) mentioned in sub-paragraph (1) of that

paragraph takes the “relevant corrective action” for the purposes

of that paragraph if (and only if)—

(i)    

in a case in which the tax advantage in question can be

counteracted by making a payment to HMRC, P makes

that payment and notifies HMRC that P has done so, or

(ii)    

in any case, P takes all necessary action to enter into an

agreement in writing with HMRC for the purpose of

relinquishing the tax advantage, and

(b)    

accordingly, sub-paragraphs (2) to (8) of that paragraph do not

apply.”

(10D)    

In subsection (11)—

(a)    

for “and HMRC” substitute “, “HMRC” and “tax advantage””;

(b)    

after “2013” insert “(as modified by this section)”.

(10E)    

After subsection (11) insert—

“(12)    

See section 10A for further modifications of Part 5 of the Finance Act

2013.”

(10F)    

After section 10 of the National Insurance Contributions Act 2014 insert—

“10A  

Application of GAAR in relation to penalties

(1)    

For the purposes of this section a penalty under section 212A of the

Finance Act 2013 is a “relevant NICs-related penalty” so far as the

penalty relates to a tax advantage in respect of relevant contributions.

(2)    

A relevant NICs-related penalty may be recovered as if it were an amount

of relevant contributions which is due and payable.

(3)    

Section 117A of the Social Security Administration Act 1992 or (as the

case may be) section 111A of the Social Security Administration

(Northern Ireland) Act 1992 (issues arising in proceedings: contributions

etc) has effect in relation to proceedings before a court for recovery of a

relevant NICs-related penalty as if the assessment of the penalty were a

NICs decision as to whether the person is liable for the penalty.

(4)    

Accordingly, paragraph 5(4)(b) of Schedule 43C to the Finance Act 2013

(assessment of penalty to be enforced as if it were an assessment to tax)

does not apply in relation to a relevant NICs-related penalty.

(5)    

In the application of Schedule 43C to the Finance Act 2013 in relation to

a relevant NICs-related penalty, paragraph 9(5) has effect as if the

reference to an appeal against an assessment to the tax concerned were to

an appeal against a NICs decision.

Notices of Amendments: 22 June 2016                     

14

Finance Bill, continued

(6)    

In paragraph 8 of that Schedule (aggregate penalties), references to a

“relevant penalty provision” include—

(a)    

any provision mentioned in sub-paragraph (5) of that paragraph,

as applied in relation to any class of national insurance

contributions by regulations (whenever made);

(b)    

section 98A of the Taxes Management Act 1970, as applied in

relation to any class of national insurance contributions by

regulations (whenever made);

(c)    

any provision in regulations made by the Treasury under which

a penalty can be imposed in respect of any class of national

insurance contributions.

(7)    

The Treasury may by regulations—

(a)    

disapply, or modify the effect of, subsection (6)(a) or (b);

(b)    

modify paragraph 8 of Schedule 43C to the Finance Act 2013 as

it has effect in relation to a relevant penalty provision by virtue

of subsection (6)(b) or (c).

(8)    

Section 175(3) to (5) of SSCBA 1992 (various supplementary powers)

applies to a power to make regulations conferred by subsection (7).

(9)    

Regulations under subsection (7) must be made by statutory instrument.

(10)    

A statutory instrument containing regulations under subsection (7) is

subject to annulment in pursuance of a resolution of either House of

Parliament.

(11)    

In this section “NICs decision” means a decision under section 8 of the

Social Security Contributions (Transfer of Functions, etc) Act 1999 or

Article 7 of the Social Security Contributions (Transfer of Functions, etc)

(Northern Ireland) Order 1999 (SI 1999/671).

(12)    

In this section “relevant contributions” means the following

contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A

1992—

(a)    

Class 1 contributions;

(b)    

Class 1A contributions;

(c)    

Class 1B contributions;

(d)    

Class 2 contributions which must be paid but in relation to which

section 11A of the Act in question (application of certain

provisions of the Income Tax Acts in relation to Class 2

contributions under section 11(2) of that Act) does not apply.””

Mr Chancellor of the Exchequer

175

Clause  145,  page  208,  line  28,  leave out from “notice” to “in” in line 30 and insert

“has been given under paragraph 5(2) or 6(2) of Schedule 43A to FA 2013 (notice of final

decision after considering Panel’s opinion about referred or counteracted arrangements)”

Mr Chancellor of the Exchequer

176

Clause  145,  page  208,  line  34,  leave out from “Panel” to end of line 36 and insert

“about the other arrangements (see subsection (8)) was as set out in paragraph 11(3)(b) of

Schedule 43 to FA 2013.”