Finance Bill (HC Bill 47)

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(6) A defeat notice given under sub-paragraph (2) or (3) is given in
respect of the relevant defeat or relevant defeats to which the original
notice relates.”

(15) In paragraph 10—

(a) 5in sub-paragraph (1)(b) for “conduct notice or a” substitute “, defeat
notice, conduct notice or”;

(b) in sub-paragraph (3), after “partner—” insert—

(za) a defeat notice (if the original notice is a defeat notice);”.

(c) in sub-paragraph (4), after “(“the new partnership”)—” insert—

(za) 10a defeat notice (if the original notice is a defeat notice);”

(d) after sub-paragraph (5) insert—

(5A) A notice under sub-paragraph (3)(za) or (4)(za) may not be
given after the end of the look-forward period of the original
notice.”

(16) 15After paragraph 11 insert—

11A The look-forward period for a notice under paragraph 7A(2) or (3) or
10(3)(za) or (4)(za)—

(a) begins on the day after the day on which the notice is given,
and

(b) 20continues to the end of the look-forward period for the
original notice (as defined in paragraph 7A(1)(a) or 10(2), as
the case may be).”

(17) Part 2 of Schedule 2 to the National Insurance Contributions Act 2015
(application of Part 5 of FA 2014 to national insurance contributions) is
25amended in accordance with subsections (18) and (19).

(18) After paragraph 30 insert—

“Threshold conditions

30A (1) In paragraph 5 of Schedule 34 (non-compliance with Part 7 of FA
2004), in sub-paragraph (4)—

(a) 30paragraph (a) includes a reference to a decision having been
made for corresponding NICs purposes that P is to be
deemed not to have failed to comply with the provision
concerned as P had a reasonable excuse for not doing the
thing required to be done, and

(b) 35the reference in paragraph (c) to a determination is to be read
accordingly.

(2) In this paragraph “corresponding NICs purposes” means the
purposes of any provision of regulations under section 132A of
SSAA 1992.

40Relevant defeats

30B (1) Schedule 34A (promoters of tax avoidance schemes: defeated
arrangements) has effect with the following modifications.

(2) References to an assessment (or an assessment to tax) include a NICs
decision relating to a person’s liability for relevant contributions.

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(3) References to adjustments include a payment in respect of a liability
to pay relevant contributions (and the definition of “adjustments” in
paragraph 24 accordingly has effect as if such payments were
included in it).

(4) 5In paragraph 9(3) the reference to an enquiry into a return includes a
relevant contributions dispute (as defined in paragraph 6 of this
Schedule).

(5) In paragraph 28(3)—

(a) paragraph (a) includes a reference to a decision having been
10made for corresponding NICs purposes that the person is to
be deemed not to have failed to comply with the provision
concerned as the person had a reasonable excuse for not
doing the thing required to be done, and

(b) the reference in paragraph (c) to a determination is to be read
15accordingly.

“Corresponding NICs purposes” means the purposes of any
provision of regulations under section 132A of SSAA 1992.”

(19) In paragraph 31 (interpretation)—

(a) before paragraph (a) insert—

(za) 20“NICs decision” means a decision under section 8 of
SSC(TF)A 1999 or Article 7 of the Social Security
Contributions (Transfer of Functions, etc) (Northern
Ireland) Order 1999 (SI 1999/671SI 1999/671);”

(b) in paragraph (b), for “are to sections of” substitute “or Schedules are to
25sections of, or Schedules to”.

(20) For the purposes of sections 237A and 241A of FA 2014, a defeat (by virtue of
any of Conditions A to F in Schedule 34A to that Act) of arrangements is
treated as not having occurred if—

(a) there has been a final judicial ruling on or before the day on which this
30Act is passed as a result of which the counteraction referred to in
paragraph 11(d), 12(1)(b), 13(1)(d), 14(1)(d) or 15(1)(d) (as the case may
be) is final for the purposes of Schedule 34A of that Act, or

(b) (in the case of a defeat by virtue of Condition F in Schedule 34A) the
judicial ruling mentioned in paragraph 16(1)(d) of that Schedule
35becomes final on or before the day on which this Act is passed.

(21) Subsection (20) does not apply in relation to a person (who is carrying on a
business as a promoter) if at any time after 17 July 2014 that person or an
associated person takes action as a result of which the person taking the
action—

(a) 40becomes a promoter in relation to the arrangements, or arrangements
related to those arrangements, or

(b) would have become a promoter in relation to arrangements mentioned
in paragraph (a) had the person not already been a promoter in relation
to those arrangements.

(22) 45For the purposes of sections 237A and 241A of FA 2014, a defeat of
arrangements is treated as not having occurred if it would (ignoring this sub-
paragraph) have occurred—

(a) on or before the first anniversary of the day on which this Act is passed,
and

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(b) by virtue of any of Conditions A to E in Schedule 34A to FA 2014, but
otherwise than as a result of a final judicial ruling.

(23) For the purposes of subsection (21) a person (“Q”) is an “associated person” in
relation to another person (“P”) at any time when any of the following
5conditions is met—

(a) P is a relevant body which is controlled by Q;

(b) Q is a relevant body, P is not an individual and Q is controlled by P;

(c) P and Q are relevant bodies and a third person controls P and Q.

(24) In subsection (23) “relevant body” and “control” are to be interpreted in
10accordance with paragraph 19 of Schedule 34A to FA 2014.

(25) In subsections (20) to (22) expressions used in Part 5 of FA 2014 (as amended
by this section) have the same meaning as in that Part.

160 Large businesses: tax strategies and sanctions for persistently unco-operative
behaviour

(1) 15Schedule 19 contains provisions relating to—

(a) the publication of tax strategies by bodies which are or are part of a
large business,

(b) the imposition of sanctions for such bodies where there has been
persistent unco-operative behaviour.

(2) 20That Schedule, so far as relating to the publication of a tax strategy for a
financial year of a relevant body or other entity, has effect only where the
financial year begins on or after the day on which this Act is passed.

(3) An officer of HMRC may not give a warning notice under Part 3 of that
Schedule to a relevant body or other entity before the beginning of its first
25financial year beginning on or after the day on which this Act is passed.

(4) In this section and Schedule 19 “HMRC” means Her Majesty’s Revenue and
Customs.

Offshore activities

161 Penalties for enablers of offshore tax evasion or non-compliance

(1) 30Schedule 20 makes provision for penalties for persons who enable offshore tax
evasion or non-compliance by other persons.

(2) Subsection (1) and that Schedule come into force on such day as the Treasury
may appoint by regulations made by statutory instrument.

(3) Regulations under this section may—

(a) 35commence a provision generally or only for specified purposes,

(b)
appoint different days for different purposes, and

(c) make supplemental, incidental and transitional provision in connection
with the coming into force of any provision of the Schedule.

162 Penalties in connection with offshore matters and offshore transfers

(1) 40Schedule 21 contains provisions amending—

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(a) Schedule 24 to FA 2007 (penalties for errors in tax returns etc),

(b) Schedule 41 to FA 2008 (penalties for failure to notify etc), and

(c) Schedule 55 to FA 2009 (penalties for failure to make return etc).

(2) That Schedule comes into force on such day as the Treasury may by regulations
5made by statutory instrument appoint.

(3) Regulations under this section may—

(a) commence a provision generally or only for specified purposes,

(b) appoint different days for different provisions or for different
purposes, and

(c) 10make supplemental, incidental and transitional provision.

163 Offshore tax errors etc: publishing details of deliberate tax defaulters

(1) Section 94 of FA 2009 (publishing details of deliberate tax defaulters) is
amended as follows.

(2) After subsection (4), insert—

(4A) 15Subsection (4B) applies where a person who is a body corporate or a
partnership has incurred—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 in
respect of a deliberate inaccuracy which involves an offshore
matter or an offshore transfer (within the meaning of paragraph
204A of that Schedule), or

(b) a penalty under paragraph 1 of Schedule 41 to FA 2008 in
respect of a deliberate failure which involves an offshore matter
or an offshore transfer (within the meaning of paragraph 6A of
that Schedule).

(4B) 25The Commissioners may publish the information mentioned in
subsection (4) in respect of any individual who—

(a) controls the body corporate or the partnership (within the
meaning of section 1124 of CTA 2010), and

(b) has obtained a tax advantage as a result of the inaccuracy or
30failure.

(4C) Subsection (4D) applies where one or more trustees of a settlement
have incurred—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 in
respect of a deliberate inaccuracy which involves an offshore
35matter or an offshore transfer (within the meaning of paragraph
4A of that Schedule), or

(b) a penalty under paragraph 1 of Schedule 41 to FA 2008 in
respect of a deliberate failure which involves an offshore matter
or an offshore transfer (within the meaning of paragraph 6A of
40that Schedule).

(4D) The Commissioners may publish the information mentioned in
subsection (4) in respect of any trustee who is an individual and who
has obtained a tax advantage as a result of the inaccuracy or failure.”

(3) In subsection (6), after “information” insert “about a person under subsection
45(1),”.

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(4) After subsection (6), insert—

(6A) Before publishing any information about an individual under
subsection (4B) or (4D), the Commissioners—

(a) must inform the individual that they are considering doing so,
5and

(b) afford the individual reasonable opportunity to make
representations about whether it should be published.”

(5) In subsection (10)—

(a) omit the word “or” at the end of paragraph (a), and after that paragraph
10insert—

(aa) paragraph 10A of that Schedule to the full extent
permitted following an unprompted disclosure,”;

(b) after paragraph (b) insert , or

(c) paragraph 13A of that Schedule to the full extent
15permitted following an unprompted disclosure.”

(6) For subsection (16) substitute—

(16) In this section—

  • “the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • 20“tax advantage” has the meaning given by section 208 of FA 2013.”

(7) The amendments made by this section come into force on such day as the
Treasury may by regulations made by statutory instrument appoint.

164 Asset-based penalties for offshore inaccuracies and failures

(1) Schedule 22 contains provision imposing asset-based penalties on certain
25taxpayers who have been charged a penalty for deliberate offshore
inaccuracies and failures.

(2) That Schedule comes into force on such day as the Treasury may by regulations
made by statutory instrument appoint.

(3) Regulations under subsection (2) may—

(a) 30commence a provision generally or only for specified purposes,

(b) appoint different days for different provisions or for different
purposes, and

(c) make supplemental, incidental and transitional provision.

165 Offences relating to offshore income, assets and activities

(1) 35After section 106A of TMA 1970 insert—

“Offshore income, assets and activities
106B Offence of failing to give notice of being chargeable to tax

(1) A person who is required by section 7 to give notice of being chargeable
to income tax or capital gains tax (or both) for a year of assessment and
40who has not given that notice by the end of the notification period
commits an offence if—

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(a) the tax in question is chargeable (wholly or in part) on or by
reference to offshore income, assets or activities, and

(b) the total amount of income tax and capital gains tax that is
chargeable for the year of assessment on or by reference to
5offshore income, assets or activities exceeds the threshold
amount.

(2) It is a defence for a person accused of an offence under this section to
prove that the person had a reasonable excuse for failing to give the
notice required by section 7.

(3) 10In this section “the notification period” has the same meaning as in
section 7 (see subsection (1C) of that section).

106C Offence of failing to deliver return

(1) A person who is required by a notice under section 8 to make and
deliver a return for a year of assessment commits an offence if—

(a) 15the return is not delivered by the end of the withdrawal period,

(b) an accurate return would have disclosed liability to income tax
or capital gains tax (or both) that is chargeable for the year of
assessment on or by reference to offshore income, assets or
activities, and

(c) 20the total amount of income tax and capital gains tax that is
chargeable for the year of assessment on or by reference to
offshore income, assets or activities exceeds the threshold
amount.

(2) It is a defence for a person accused of an offence under this section to
25prove that the person had a reasonable excuse for failing to deliver the
return.

(3) In this section “the withdrawal period” has the same meaning as in
section 8B (see subsection (6) of that section).

106D Offence of making inaccurate return

(1) 30A person who is required by a notice under section 8 to make and
deliver a return for a year of assessment commits an offence if, at the
end of the amendment period—

(a) the return contains an inaccuracy the correction of which would
result in an increase in the amount of income tax or capital gains
35tax (or both) that is chargeable for the year of assessment on or
by reference to offshore income, assets or activities, and

(b) the amount of that increase exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to
prove that the person took reasonable care to ensure that the return was
40accurate.

(3) In this section “the amendment period” means the period for amending
the return under section 9ZA.

106E Exclusions from offences under sections 106B to 106D

(1) A person is not guilty of an offence under section 106B, 106C or 106D if
45the capacity in which the person is required to give the notice or make
and deliver the return is—

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(a) as a relevant trustee of a settlement, or

(b) as the executor or administrator of a deceased person.

(2) The Treasury may by regulations provide that a person is not guilty of
an offence under section 106B, 106C or 106D if—

(a) 5conditions specified in the regulations are met, or

(b) circumstances so specified exist.

(3) The conditions may (in particular) include conditions in relation to the
income, assets or activities on or by reference to which the tax in
question is chargeable.

106F 10Offences under sections 106B to 106D: supplementary provision

(1) Where a period of time is extended under subsection (2) of section 118
by HMRC, the tribunal or an officer (but not where a period is
otherwise extended under that subsection), any reference in section
106B, 106C or 106D to the end of the period is to be read as a reference
15to the end of the period as so extended.

(2) The Treasury may by regulations specify the amount (which must not
be less than £25,000) that is to be the threshold amount for the purposes
of sections 106B to 106D.

(3) The Treasury may by regulations make provision as to the calculation
20for the purposes of sections 106B to 106D of—

(a) the amount of tax that is chargeable on or by reference to
offshore income, assets or activities, and

(b) the increase in the amount of tax that is so chargeable as a result
of correcting an inaccuracy.

(4) 25In sections 106B to 106D and this section “offshore income, assets or
activities” means—

(a) income arising from a source in a territory outside the United
Kingdom,

(b) assets situated or held in a territory outside the United
30Kingdom, or

(c) activities carried on wholly or mainly in a territory outside the
United Kingdom.

(5) In subsection (4), “assets” has the meaning given in section 21(1) of the
1992 Act, but also includes sterling.

106G 35Penalties for offences under sections 106B to 106D

(1) A person guilty of an offence under section 106B, 106C or 106D is liable
on summary conviction—

(a) in England and Wales, to a fine or to imprisonment for a term
not exceeding 51 weeks or to both, and

(b) 40in Scotland or Northern Ireland, to a fine not exceeding level 5
on the standard scale or to imprisonment for a term not
exceeding 6 months or to both.

(2) In relation to an offence committed before the coming into force of
section 281(5) of the Criminal Justice Act 2003, the reference in
45subsection (1)(a) to 51 weeks is to be read as a reference to 6 months.

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106H Regulations under sections 106E and 106F

(1) This section makes provision about regulations under sections 106E
and 106F.

(2) If the regulations contain a reference to a document or any provision of
5a document and it appears to the Treasury that it is necessary or
expedient for the reference to be construed as a reference to that
document or that provision as amended from time to time, the
regulations may make express provision to that effect.

(3) The regulations—

(a) 10may make different provision for different cases, and

(b) may include incidental, supplemental, consequential and
transitional provision and savings.

(4) The regulations are to be made by statutory instrument.

(5) An instrument containing the regulations is subject to annulment in
15pursuance of a resolution of the House of Commons.”

(2) The amendment made by this section comes into force on such day as the
Treasury may by regulations made by statutory instrument appoint.

(3) The regulations—

(a) may appoint different days for different purposes, and

(b) 20may include incidental, supplemental, consequential and transitional
provision and savings.

(4) The amendment made by this section does not have effect in relation to—

(a) a failure to give a notice required by section 7 of TMA 1970,

(b) a failure to make and deliver a return required by section 8 of TMA
251970, or

(c) a return required by section 8 that contains an inaccuracy,

if the notice or return relates to a tax year before that in which the amendment
comes into force.

Part 11 30Administration, enforcement and supplementary powers

Assessment and returns

166 Simple assessments

(1) Schedule 23 contains provisions about simple assessments by HMRC.

(2) Paragraphs 1 to 8 of that Schedule have effect in relation to the 2016-17 tax year
35and subsequent years.

(3) Paragraph 9 of that Schedule comes into force on such day as the Treasury may
appoint by regulations made by statutory instrument.

(4) Regulations under subsection (3) may—

(a) commence paragraph 9 generally or only for specified purposes, and

(b) 40appoint different days for different purposes.

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167 Time limit for self assessment tax returns

(1) TMA 1970 is amended as follows.

(2) In section 34 (ordinary time limit of 4 years for assessments), after subsection
(2) insert—

(3) 5In this section “assessment” does not include a self-assessment.”

(3) After that section insert—

34A Ordinary time limit for self-assessments

(1) Subject to subsections (2) and (3), a self assessment contained in a
return under section 8 or 8A may be made and delivered at any time not
10more than 4 years after the end of the year of assessment to which it
relates.

(2) Nothing in subsection (1) prevents—

(a) a person who has received a notice under section 8 or 8A within
that period of 4 years from delivering a return including a self-
15assessment within the period of 3 months beginning with the
date of the notice,

(b) a person in respect of whom a determination under section 28C
has been made from making a self-assessment in accordance
with that section within the period allowed by subsection (5)(a)
20or (b) of that section.

(3) Subsection (1) has effect subject to the following provisions of this Act
and to any other provisions of the Taxes Acts allowing a longer period
in any particular class of case.

(4) This section has effect in relation to self-assessments for a year of
25assessment earlier than 2012-13 as if—

(a) in subsection (1) for the words from “not more” to the end there
were substituted “on or before 5 April 2017”, and

(b) in subsection (2)(a) for the words “within that period of 4 years”
there were substituted “on or before 5 April 2017.””

168 30HMRC power to withdraw notice to file a tax return

(1) Section 8B of TMA 1970 (withdrawal of notice under section 8 or 8A) is
amended as follows.

(2) In subsection (2) for the words from “the person” to the end substitute “HMRC
may withdraw the notice (whether at the request of the person or otherwise)”.

(3) 35In subsection (3) for “no request may be made” substitute “the notice may not
be withdrawn”.

(4) In subsection (4) omit “, on receiving a request,”.

(5) In subsection (6)(b) for “agree with the person” substitute “determine”.

(6) In paragraph 17A of Schedule 55 to the Finance Act 2009 (penalty for failure to
40make returns etc), in sub-paragraph (1)(b) for the words from the beginning to
“withdraw” substitute “HMRC decide to give P a notice under section 8B
withdrawing”.

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(7) The amendments made by this section have effect in relation to any notice
under section 8 or 8A of TMA 1970 given in relation to the 2014-15 tax year or
any subsequent year (and it is immaterial whether the notice was given before
or after the passing of this Act).

5Judgment debts

169 Rate of interest applicable to judgment debts etc: Scotland

(1) This section applies if—

(a) a sum is payable to or by the Commissioners under a decree or extract
issued in any court proceedings relating to a taxation matter (a “tax-
10related judgment debt”), and

(b) interest in relation to the tax-related judgment debt is included in or
payable under the decree or extract.

(2) In a case where the rate of interest in relation to the tax-related judgment debt
is stated in the decree or extract, the rate stated in relation to that debt may not
15exceed (and may not be capable of exceeding)—

(a) in the case of a sum payable to the Commissioners, the late payment
interest rate, and

(b) in the case of a sum payable by the Commissioners, the special
repayment rate.

(3) 20In a case where the rate of interest in relation to the tax-related judgment debt
is not stated in the decree or extract but provided for by an enactment or rule
of court (whenever passed or made), that enactment or rule is to have effect in
relation to the debt as if for the rate for which it provides there were
substituted—

(a) 25in the case of a sum payable to the Commissioners, the late payment
interest rate, and

(b) in the case of a sum payable by the Commissioners, the special
repayment rate.

(4) This section has effect in relation to interest for periods beginning on or after
30the day on which this Act is passed, regardless of—

(a) the date of the decree or extract in question, and

(b) whether interest begins to run on or after the day on which this Act is
passed, or began to run before that date.

(5) In this section—

  • 35“the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • “enactment” includes an Act of the Scottish Parliament or an instrument
    made under such an Act;

  • “late payment interest rate” means the rate provided for in regulations
    40made by the Treasury under section 103(1) of FA 2009;

  • “special repayment rate” has the same meaning as in section 52 of
    F(No.2)A 2015 (and subsections (7) to (10) of that section apply for the
    purposes of this section as they apply for the purposes of that section);

  • “taxation matter” means anything the collection and management of
    45which is the responsibility of the Commissioners (or was the
    responsibility of the Commissioners of Inland Revenue or
    Commissioners of Customs and Excise);

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  • “working day” means any day other than a non-business day as defined
    in section 92 of the Bills of Exchange Act 1882.

(6) This section extends to Scotland only.

170 Rate of interest applicable to judgment debts etc: Northern Ireland

(1) 5This section applies if a sum payable to or by the Commissioners under a
judgment or order given or made in any court proceedings relating to a
taxation matter (a “tax-related judgment debt”) carries interest.

(2) In a case where the rate of interest is specified in the judgment (in the case of
the High Court) or directed by the judge (in the case of a county court), the rate
10specified or directed in relation to that debt may not exceed (and may not be
capable of exceeding)—

(a) in the case of a sum payable to the Commissioners, the late payment
interest rate, and

(b) in the case of a sum payable by the Commissioners, the special
15repayment rate.

(3) In a case where the rate of interest in relation to the tax-related judgment debt
is not specified in the judgment or directed by the judge but provided for by an
enactment or rule of court (whenever passed or made), that enactment or rule
is to have effect in relation to the debt as if for the rate for which it provides
20there were substituted—

(a) in the case of a sum payable to the Commissioners, the late payment
interest rate, and

(b) in the case of a sum payable by the Commissioners, the special
repayment rate.

(4) 25This section has effect in relation to interest for periods beginning on or after
the day on which this Act is passed, regardless of—

(a) the date of the judgment or order in question, and

(b) whether interest begins to run on or after the day on which this Act is
passed, or began to run before that date.

(5) 30In this section—

  • “the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • “enactment” includes Northern Ireland legislation or an instrument made
    under such legislation;

  • 35“late payment interest rate” means the rate provided for in regulations
    made by the Treasury under section 103(1) of FA 2009;

  • “special repayment rate” has the same meaning as in section 52 of F(No.2)
    A 2015 (and subsections (7) to (10) of that section apply for the purposes
    of this section as they apply for the purposes of that section);

  • 40“taxation matter” means anything the collection and management of
    which is the responsibility of the Commissioners (or was the
    responsibility of the Commissioners of Inland Revenue or
    Commissioners of Customs and Excise);

  • “working day” means any day other than a non-business day as defined
    45in section 92 of the Bills of Exchange Act 1882.

(6) This section extends to Northern Ireland only.

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171 Rate of interest applicable to judgment debts etc: England and Wales

(1) In section 52 of F(No. 2)A 2015 (rates of interest applicable to judgment debts
etc in taxation matters: England and Wales), in subsection (15), in the definition
of “taxation matter” omit “, other than national insurance contributions,”.

(2) 5This section has effect in relation to interest for periods beginning on or after
the day on which this Act is passed, regardless of—

(a) the date of the judgment or order in question, and

(b) whether interest begins to run on or after the day on which this Act is
passed, or began to run before that date.

(3) 10This section extends to England and Wales only.

Enforcement powers

172 Gift aid: power to impose penalties on charities and intermediaries

(1) At the end of section 428 of ITA 2007 insert—

(5) The regulations may also make provision—

(a) 15for the imposition of a penalty of a specified amount (which
must not exceed £3000) for a failure to comply with a specified
requirement imposed by the regulations,

(b) for the assessment and recovery of the penalty (which may
include provision about the reduction of the penalty in specified
20circumstances), and

(c) conferring a right of appeal against a decision that a penalty is
payable.”

(2) The amendment made by this section comes into force on such day as the
Treasury may by regulations made by statutory instrument appoint.

173 25Proceedings under customs and excise Acts: prosecuting authority

(1) Part 11 of CEMA 1979 (arrest of persons, forfeiture and legal proceedings) is
amended as set out in subsections (2) and (3).

(2) In section 146A(7) (definition of prosecuting authority)—

(a) in the opening words, for “prosecution” substitute “prosecuting”;

(b) 30in paragraph (b), omit “the Commissioners or”;

(c) in paragraph (c), for “the Commissioners” substitute “the Director of
Public Prosecutions for Northern Ireland”.

(3) In section 150(1) (joint and several liability), for the words from “the Director”
to “Ireland)” substitute “prosecuting authority (within the meaning of section
35146A)”.

(4) In consequence of subsection (3), in Schedule 4 to the Commissioners for
Revenue and Customs Act 2005, omit paragraph 25.

(5) The amendments made by this section apply in relation to proceedings
commenced on or after the day on which this Act is passed.

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174 Detention and seizure under CEMA 1979: notice requirements etc

(1) CEMA 1979 is amended as follows.

(2) Schedule 2A (detention of things as liable to forfeiture) is amended as set out
in subsections (3) and (4).

(3) 5In paragraph 3(2) (exceptions to requirement of notice of detention)—

(a) omit the “or” at the end of paragraph (b), and after that paragraph
insert—

(ba) a person who has (or appears to have) possession or
control of the thing being detained,”;

(b) 10in paragraph (c), after “on” insert “or from”;

(c) at the end insert , or

(d) in the case of any thing detained on or from a vehicle,
the driver of the vehicle.”

(4) In paragraph 4(2) (unauthorised removal or disposal of things detained:
15definition of “responsible person”), for paragraphs (a) and (b) substitute—

(a) the person whose offence or suspected offence occasioned the
detention,

(b) the owner or any of the owners of the thing detained or any
servant or agent of such an owner,

(c) 20a person who has (or appears to have) possession or control
of the thing being detained,

(d) in the case of any thing detained on a ship or aircraft, the
master or commander,

(e) in the case of any thing detained on a vehicle, the driver of the
25vehicle, or

(f) a person whom the person who detains the thing reasonably
believes to be a person within any of paragraphs (a) to (e).”

(5) In Schedule 3 (seizure and forfeiture), in paragraph 1(2) (exceptions to
requirement of notice of seizure)—

(a) 30after paragraph (b) insert—

(ba) a person who has (or appears to have) possession or
control of the thing being seized; or”;

(b) in paragraph (c), for “in” substitute “on or from”;

(c) at the end insert ; or

(d) 35in the case of any thing seized on or from a vehicle,
the driver of the vehicle.”

(6) The amendments made by this section have effect in relation to things detained
or seized on or after the day on which this Act is passed.

175 Data-gathering powers: providers of payment or intermediary services

(1) 40In Part 2 of Schedule 23 to FA 2011 (data-gathering powers: relevant data-
holders), after paragraph 13A insert—

“Providers of electronic stored-value payment services

13B (1) A person who provides electronic stored-value payment services is a
relevant data-holder.

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(2) In this paragraph “electronic stored-value payment services” means
services by means of which monetary value is stored electronically
for the purpose of payments being made in respect of transactions to
which the provider of those services is not a party.

5Business intermediaries

13C (1) A person who—

(a) provides services to enable or facilitate transactions between
suppliers and their customers or clients (other than services
provided solely to enable payments to be made), and

(b) 10receives information about such transactions in the course of
doing so,

is a relevant data-holder.

(2) In this paragraph “suppliers” means persons supplying goods or
services in the course of business.

(3) 15For the purposes of this paragraph, information about transactions
includes information that is capable of indicating the likely quantity
or value of transactions.”

(2) This section applies in relation to relevant data with a bearing on any period
(whether before, on or after the day on which this Act is passed).

176 20Data-gathering powers: daily penalties for extended default

(1) Part 4 of Schedule 23 to FA 2011 (data-gathering powers: penalties) is amended
as follows.

(2) In paragraph 38 (increased daily default penalty)—

(a) in sub-paragraphs (1)(c) and (2), for “imposed” substitute “assessable”;

(b) 25for sub-paragraphs (3) and (4) substitute—

(3) If the tribunal decides that an increased daily penalty should
be assessable—

(a) the tribunal must determine the day from which the
increased daily penalty is to apply and the maximum
30amount of that penalty (“the new maximum
amount”);

(b) from that day, paragraph 31 has effect in the data-
holder’s case as if “the new maximum amount” were
substituted for “£60”.

(4) 35The new maximum amount may not be more than £1,000.”;

(c) in sub-paragraph (5), for “the amount” substitute “the new maximum
amount”.

(3) In paragraph 39—

(a) in sub-paragraph (1), for “a data-holder becomes liable to a penalty”
40substitute “the tribunal makes a determination”;

(b) in sub-paragraph (2), for “the day from which the increased penalty is
to apply” substitute “new maximum amount and the day from which it
applies”;

(c) omit sub-paragraph (3).

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(4) In paragraph 40 (enforcement of penalties), in sub-paragraph (2)(a) omit “or
39”.

(5) At the end of paragraph 36 (right to appeal against penalty), the existing text
of which becomes sub-paragraph (1), insert—

(2) 5But sub-paragraph (1)(b) does not give a right of appeal against the
amount of an increased daily penalty payable by virtue of paragraph
38.”

Payment

177 Extension of provisions about set-off to Scotland

(1) 10Sections 130 and 131 of FA 2008 (which deal with the availability of set-off in
England and Wales and Northern Ireland) extend also to Scotland.

(2) Accordingly, those sections are amended as follows.

(3) In section 130—

(a) omit subsection (10), and

(b) 15in the heading omit “: England and Wales and Northern Ireland”.

(4) In section 131—

(a) in subsection (5), in paragraph (a), after “winding up order” insert “or
award of sequestration”,

(b) in that subsection, omit the “or” at the end of paragraph (d) and after
20paragraph (e) insert , or

(f) that person’s estate becomes vested in any other person
as that person’s trustee under a trust deed (within the
meaning of the Bankruptcy (Scotland) Act 1985).”, and

(c) omit subsection (9).

25Raw tobacco

178 Raw tobacco approval scheme

(1) After section 8J of TPDA 1979 insert—

8K Raw tobacco: definitions

(1) The following definitions apply for the purposes of sections 8L to 8U.

(2) 30“Raw tobacco” means the leaves or any other part of a plant of the
genus Nicotiana but does not include—

(a) any part of a living plant, or