Finance (No. 2) Bill (HL Bill 156)

(b) any appeal where paragraph (a)(ii) applies is to be made within the
period of 30 days beginning with the conclusion date;

(c) if HMRC have notified P, or the other person, that a review will not
be undertaken, an appeal may be made only if the appeal tribunal
5gives permission to do so.

(5) In a case where paragraph 7(8) applies, an appeal may be made at any time
from the end of the period specified in paragraph 7(6) to the date 30 days
after the conclusion date.

(6) An appeal may be made after the end of the period specified in sub-
10paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to
do so.

(7) In this paragraph “conclusion date” means the date of the document
notifying the conclusions of the review.

Appeals: further provision

11 (1) 15An appeal relating to a decision that an amount of soft drinks industry levy
is due from a person may not be considered by the appeal tribunal unless the
amount which HMRC have determined to be due has been paid or
deposited with them.

(2) In a case where the amount determined to be payable as soft drinks industry
20levy has not been paid or deposited an appeal may be considered—

(a) if HMRC are satisfied (on the application of the appellant), or

(b) if HMRC are not satisfied, the appeal tribunal decides,

that the requirement to pay or deposit the amount determined would cause
the appellant to suffer hardship

(3) 25Notwithstanding the provisions of sections 11 and 13 of the Tribunals,
Courts and Enforcement Act 2007 (rights of appeal) the decision of the
appeal tribunal as to the issue of hardship is final.

Determinations on appeal

12 On an appeal against a decision mentioned in paragraph 1(a) or (c) to (e), the
30appeal tribunal may affirm or cancel the decision.

13 On an appeal against a decision mentioned in paragraph 1(f) to (j), the
appeal tribunal may—

(a) affirm the decision, or

(b) substitute for that decision another decision that the Commissioners
35had power to make.

14 Subject to paragraph 15, on an appeal against a decision mentioned in
paragraph 1(b) or (k) to (o), the appeal tribunal may—

(a) affirm or cancel the decision;

(b) substitute for that decision another decision that the Commissioners,
40or (as the case may be) an officer of Revenue and Customs had power
to make;

(c) vary the decision;

(d) direct that the decision, so far as it remains in force, is to cease to have
effect from such time as the tribunal may direct;

(e) require HMRC to conduct a review, or a further review, of the
decision.

15 (1) On an appeal against a decision mentioned in paragraph 1(k), (n) or (o), the
appeal tribunal may allow the appeal only if it considers that—

(a) 5the Commissioners could not reasonably have been satisfied that
there were grounds for the decision, or

(b) if information brought to the attention of the appeal tribunal had
been available to the Commissioners at the time the decision was
made, the Commissioners could not reasonably have been satisfied
10that there were grounds for the decision.

(2) Where sub-paragraph (1) applies in relation to a decision mentioned in
paragraph 1(o) (giving of a direction), the direction has effect pending the
determination of the appeal.

Section 102

SCHEDULE 23 15Soft drinks industry levy: supplementary amendments

HMRC powers to obtain information etc.

1 (1) Schedule 36 to FA 2008 (powers to obtain information etc.) is amended as
follows.

(2) In paragraph 10 (power to inspect business premises etc.), at the end insert—

“(5) 20In sub-paragraph (1), the reference to a person’s tax position does not
include a reference to a person’s position as regards soft drinks
industry levy.””

(3) In paragraph 63(1) (meaning of “tax”), after paragraph (i) insert—

“(ia) soft drinks industry levy,”.”

25Penalties: failure to notify etc.

2 (1) Schedule 41 to FA 2008 (penalties: failure to notify etc.) is amended as
follows.

(2) In the Table in paragraph 1, after the entry relating to insurance premium
tax, insert—

(3) In the heading before paragraph 4, at the end insert “etc”.

(4) 35In paragraph 4, after sub-paragraph (1) insert—

“(1A) A penalty is payable by a person (P) where—

(a) after a charge to soft drinks industry levy has arisen in
respect of chargeable soft drinks, P acquires possession of

them or is concerned with carrying, removing, depositing,
keeping or otherwise dealing with them, and

(b) at the time when P acquires possession of the chargeable
soft drinks or is so concerned, a payment of soft drinks
5industry levy in respect of the chargeable soft drinks is due
or payable and has not been paid.””

(5) In that paragraph, in sub-paragraph (2)—

(a) for “sub-paragraph (1)” substitute “this paragraph”;

(b) at the end insert—

• 10““chargeable soft drinks” has the same meaning as in Part 3 of FA
  2017.”

(6) In paragraph 5(4), after “deferred” insert “or (as the case may be) chargeable
soft drinks in respect of which a payment of soft drinks industry levy is due
and payable and has not been paid”.

(7) 15In paragraph 10, after “deferred” insert “or (as the case may be) chargeable
soft drinks in respect of which a payment of soft drinks industry levy is due
and payable and has not been paid”.

(8) In paragraph 11(2)(d), after “deferred” insert “or (as the case may be)
chargeable soft drinks in respect of which a payment of soft drinks industry
20levy is due and payable and has not been paid”.

(9) In paragraph 21—

(a) in sub-paragraph (4), for “paragraph 4” substitute “paragraph 4(1)”;

(b) after that sub-paragraph insert—

“(5) In paragraph 4(1A) the reference to P acquiring possession
25of, or being concerned in dealing with, chargeable soft
drinks in respect of which a payment of soft drinks
industry levy is payable but has not been paid includes a
person who acts on P’s behalf in doing so; but P is not
liable to a penalty in respect of any action by P’s agent
30where P satisfies HMRC or (on appeal) the First-tier
Tribunal that P took reasonable care to avoid it.””

Penalties: failure to comply with requirements relating to returns

3 In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1,
after the entry relating to the statement under section 1(1)(a) of the
35Petroleum Revenue Tax Act 1980, insert—

4 (1) Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended
40in accordance with this paragraph.

(2) In paragraph 1(4), in the definition of “penalty date”, for “13” substitute
“13A”.

(3) In the Table in paragraph 1, after item 13 insert—

(4) 5In subsections (2) and (4) of section 106 of FA 2009 (penalties for failure to
make returns: commencement) references to Schedule 55 to that Act have
effect as references to that Schedule as amended by this paragraph.

5 (1) Schedule 56 to FA 2009 (penalty for failure to make payments on time) is
amended in accordance with this paragraph.

(2) 10In the Table in paragraph 1, after item 11 insert—

(3) In subsections (2) and (4) of section 107 of FA 2009 (penalties for failure to
pay tax) references to Schedule 56 to that Act have effect as references to that
20Schedule as amended by this paragraph.

6 (1) Schedule 23 to FA 2011 (data-gathering powers) is amended in accordance
with this paragraph.

(2) After paragraph 24 insert—

““Chargeable soft drinks

24A (1) 25A person who is involved (in any capacity) in any of the following
activities is a relevant data-holder—

(a) producing chargeable soft drinks;

(b) packaging chargeable soft drinks;

(c) carrying on a business involving the sale of chargeable soft
30drinks.

(2) For the purposes of sub-paragraph (1), “chargeable soft drinks”,
“producing” and “packaging” have the same meaning as in Part 3
of FA 2017.””

(3) In paragraph 45(1) (meaning of “tax”), after paragraph (i) insert—

“(ia) 35soft drinks industry levy,”.”

Interest

7 In Schedule 53 to FA 2009 (late payment interest) after paragraph 11B

insert—

““Soft drinks industry levy due from unregistered persons

11C (1) This paragraph applies where an amount of soft drinks industry
levy is due from a person (P) in respect of a period during which
5P meets the liability condition (as defined for the purposes of
section 92(2) of FA 2017) but was not registered.

(2) The late payment interest start date in respect of the amount is the
date which would have been the late payment interest date in
respect of that amount if P had been registered when P had first
10become liable to be registered.””

Section 115

SCHEDULE 24 Third country goods fulfilment businesses: penalty

Liability to penalty

1 (1) A penalty is payable by a person (“P”) who—

(a) 15carries on a third country goods fulfilment business, and

(b) is not an approved person.

(2) In this Schedule references to a “contravention” are to acting as mentioned
in sub-paragraph (1).

Amount of penalty

2 (1) 20If the contravention is deliberate and concealed, the amount of the penalty
is the maximum amount (see paragraph 10).

(2) If the contravention is deliberate but not concealed, the amount of the
penalty is 70% of the maximum amount.

(3) In any other case, the amount of the penalty is 30% of the maximum amount.

(4) 25The contravention is—

(a) “deliberate and concealed” if the contravention is deliberate and P
makes arrangements to conceal the contravention, and

(b) “deliberate but not concealed” if the contravention is deliberate but
P does not make arrangements to conceal the contravention.

30Reductions for disclosure

3 (1) Paragraph 4 provides for reductions in penalties under this Schedule where
P discloses a contravention.

(2) P discloses a contravention by—

(a) telling the Commissioners about it,

(b) 35giving the Commissioners reasonable help in identifying any other
contraventions of which P is aware, and

(c) allowing the Commissioners access to records for the purpose of
identifying such contraventions.

(3) Disclosure of a contravention—

(a) is “unprompted” if made at a time when P has no reason to believe
that the Commissioners have discovered or are about to discover the
contravention, and

(b) 5otherwise, is “prompted”.

(4) In relation to disclosure, “quality” includes timing, nature and extent.

4 (1) Where P discloses a contravention, the Commissioners must reduce the
penalty to one that reflects the quality of the disclosure.

(2) If the disclosure is prompted, the penalty may not be reduced below—

(a) 10in the case of a contravention that is deliberate and concealed, the
maximum amount,

(b) in the case of a contravention that is deliberate but not concealed,
35% of the maximum amount, and

(c) in any other case, 20% of the maximum amount.

(3) 15If the disclosure is unprompted, the penalty may not be reduced below—

(a) in the case of a contravention that is deliberate and concealed, 30% of
the maximum amount,

(b) in the case of a contravention that is deliberate but not concealed,
20% of the maximum amount, and

(c) 20in any other case, 10% of the maximum amount.

Special reduction

5 (1) If the Commissioners think it right because of special circumstances, they
may reduce a penalty under this Schedule.

(2) In sub-paragraph (1) “special circumstances” does not include ability to pay.

(3) 25In sub-paragraph (1) the reference to reducing a penalty includes a reference
to—

(a) staying a penalty, and

(b) agreeing a compromise in relation to proceedings for a penalty.

Assessment

6 (1) 30Where P becomes liable for a penalty under this Schedule, the
Commissioners must—

(a) assess the penalty,

(b) notify P, and

(c) state in the notice the contravention in respect of which the penalty
35is assessed.

(2) A penalty under this Schedule must be paid before the end of the period of
30 days beginning with the day on which notification of the penalty is
issued.

(3) A penalty under this Schedule is recoverable as a debt due to the Crown.

(4) 40An assessment of a penalty under this Schedule may not be made later than
one year after evidence of facts sufficient in the opinion of the
Commissioners to indicate the contravention comes to their knowledge.

(5) Two or more contraventions may be treated by the Commissioners as a
single contravention for the purposes of assessing a penalty under this
Schedule.

Reasonable excuse

7 (1) 5Liability to a penalty does not arise under this Schedule in respect of a
contravention which is not deliberate if P satisfies the Commissioners or (on
an appeal made to the appeal tribunal) the tribunal that there is a reasonable
excuse for the contravention.

(2) For the purposes of sub-paragraph (1), where P relies on any other person to
10do anything, that is not a reasonable excuse unless P took reasonable care to
avoid the contravention.

Companies: officer’s liability

8 (1) Where a penalty under this Schedule is payable by a company in respect of
a contravention which was attributable to an officer of the company, the
15officer is liable to pay such portion of the penalty (which may be 100%) as
the Commissioners may specify by written notice to the officer.

(2) Sub-paragraph (1) does not allow the Commissioners to recover more than
100% of a penalty.

(3) In the application of sub-paragraph (1) to a body corporate other than a
20limited liability partnership, “officer” means—

(a) a director (including a shadow director within the meaning of
section 251 of the Companies Act 2006),

(b) a manager, and

(c) a secretary.

(4) 25In the application of sub-paragraph (1) to a limited liability partnership,
“officer” means a member.

(5) In the application of sub-paragraph (1) in any other case, “officer” means—

(a) a director,

(b) a manager,

(c) 30a secretary, and

(d) any other person managing or purporting to manage any of the
company’s affairs.

(6) Where the Commissioners have specified a portion of a penalty in a notice
given to an officer under sub-paragraph (1)—

(a) 35paragraph 5 applies to the specified portion as to a penalty,

(b) the officer must pay the specified portion before the end of the period
of 30 days beginning with the day on which the notice is given,

(c) sub-paragraphs (3) to (5) of paragraph 6 apply as if the notice were
an assessment of a penalty, and

(d) 40paragraph 9 applies as if the officer were liable to a penalty.

(7) In this paragraph “company” means any body corporate or unincorporated
association, but does not include a partnership.

Double jeopardy

9 P is not liable to a penalty under this Schedule in respect of a contravention
in respect of which P has been convicted of an offence.

The maximum amount

10 (1) 5In this Schedule “the maximum amount” means £10,000.

(2) If it appears to the Treasury that there has been a change in the value of
money since the last relevant date, they may by regulations substitute for the
sum for the time being specified in sub-paragraph (1) such other sum as
appears to them to be justified by the change.

(3) 10In sub-paragraph (2), “relevant date” means—

(a) the date on which this Act is passed, and

(b) each date on which the power conferred by that sub-paragraph has
been exercised.

(4) Regulations under this paragraph do not apply to any contravention which
15occurs wholly before the date on which they come into force.

Appeal tribunal

11 In this Schedule “appeal tribunal” has the same meaning as in Chapter 2 of
Part 1 of the Finance Act 1994.

Section 121

SCHEDULE 25 20Digital reporting and record-keeping: amendment of TMA 1970

1 TMA 1970 is amended as follows.

2 (1) Section 7 (notice of liability) is amended as follows.

(2) In subsection (1A) for the words from “under section 8” to the end substitute
“to file under section 8 for the year of assessment”.

(3) 25In subsection (1B)(a) for the words from “under section 8” to “gains”
substitute “to file under section 8 for the year of assessment”.

3 (1) Section 8 (personal return) is amended as follows.

(2) For the heading substitute “Notices to file: persons other than trustees”.

(3) For subsection (1) substitute—

“(1) 30For the purpose of establishing—

(a) the amounts in which a person is chargeable to income tax
and capital gains tax for a year of assessment, and

(b) the amount payable by the person by way of income tax for
the year,

35an officer of Revenue and Customs may give the person a notice to
file for the year of assessment.””

(4) In subsection (1AA)(a) for “return” substitute “information filed in response
to the notice to file or in any end of period statement for the year of
assessment provided to HMRC by the person”.

(5) After subsection (1AA) insert—

“(1AB) 5A notice to file for a year of assessment is a notice requiring the
person concerned—

(a) to file the following for that year (in addition to any end of
period statement for the year that may be required by
regulations under paragraph 8 of Schedule A1)—

(i) 10such information as may reasonably be required in
pursuance of the notice for the purpose mentioned in
subsection (1),

(ii) a self-assessment (except in a case where section 9(2)
applies), and

(iii) 15a final declaration, and

(b) to deliver to HMRC such accounts, statements, or other
documents (relating to the information filed as mentioned in
paragraph (a)(i) and (ii)) as may reasonably be required for
the purpose mentioned in subsection (1).

(1AC) 20The duty to file the things mentioned in subsection (1AB)(a) is to be
complied with—

(a) where the person is not required to provide an end of period
statement for the year, by making and delivering to HMRC a
return containing those things, and

(b) 25where the person is required to provide such a statement,
by—

(i) making and delivering to HMRC a return containing
those things, or

(ii) providing those things to HMRC using the facility to
30file mentioned in paragraph 9 of Schedule A1.

(1AD) It is immaterial that any of the information required as mentioned in
subsection (1AB)(a)(i) in response to a notice to file has been
provided to HMRC before the date of the notice.””

(6) In subsection (1B)—

(a) 35for “a return under this section” substitute “the information filed in
response to a notice to file”;

(b) after “relevant” insert “partnership”.

(7) In subsection (1C)—

(a) after ““relevant” insert “partnership”;

(b) 40after “means a” insert “partnership”;

(c) for “of this Act” substitute “, or paragraph 10 of Schedule A1,”.

(8) For subsection (1D) substitute—

“(1D) Where the method to be used for complying with a notice to file for
a year of assessment (Year 1) is filing a return—

(a) 45if the return is a non-electronic return, the person must
comply with the notice on or before 31 October in Year 2, and

(b) if the return is an electronic return, the person must comply
with the notice on or before 31 January in Year 2.””

(9) In subsection (1F) for “a return” substitute “the return”.

(10) In subsection (1G) for “a return” substitute “the return”.

(11) 5After subsection (1H) insert—

“(1HA) Where the method to be used for complying with a notice to file for
a year of assessment (Year 1) is using the facility mentioned in
paragraph 9 of Schedule A1, the person must comply with the notice
on or before—

(a) 1031 January in Year 2, or

(b) if later, the last day of the period of 3 months beginning with
the date of the notice.””

(12) For subsection (2) substitute—

“(2) The final declaration required by a notice to file is a declaration by
15the person concerned to the effect that to the best of the person’s
knowledge the information and self assessment filed in response to
the notice are (taken together) correct and complete.””

(13) In subsections (3), (4) and (4A) for “under this section” substitute “to file”.

(14) In subsection (4B) for the words from “may” to “income” substitute “to file
20may require the information filed in response”.

(15) After subsection (5) insert—

“(6) In this section “notice to file” means a notice to file under this section.

(7) In the Taxes Acts, unless the contrary intention appears—

(a) a reference to a return under this section for a year of
25assessment is a reference to the following—

(i) the information required by virtue of subsection
(1AB)(a)(i), any self-assessment and the final
declaration filed for the year in response to a notice to
file (whether contained in a return for the year as
30mentioned in subsection (1AC)(a) or (b)(i)) or filed
using the facility mentioned in paragraph 9 of
Schedule A1), and

(ii) any end of period statement for the year which has
been provided to HMRC in order to comply with
35regulations under Schedule A1,

and a reference to anything required to be included in a
return under this section is to be construed accordingly, and

(b) a reference to making and delivering a return under this
section is a reference to—

(i) 40making and delivering a return as mentioned in
subsection (1AC)(a) or (b)(i), or

(ii) if the response to a notice to file is made using the
facility mentioned in paragraph 9 of Schedule A1,
making the final declaration required by the notice.””

4 (1) 45Section 8A (trustee’s return) is amended as follows.