Finance Bill (HL Bill 71)

(2) The period in which it is lawful for HMRC to assess the person to the
offshore tax is extended by virtue of this paragraph to end with 5 April 2021.

(3) In this paragraph “offshore tax”, in relation to any relevant offshore tax non-
compliance, means tax corresponding to the offshore PLR in respect of the
5non-compliance.

Further penalty in connection with offshore asset moves

27 (1) Schedule 21 to FA 2015 (penalties in connection with offshore asset moves)
is amended as follows.

(2) In paragraph 2 (original penalties triggering penalties under Schedule 21)
10omit “and” after paragraph (b) and after paragraph (c) insert “, and

(d) a penalty under paragraph 1 of Schedule 18 to FA 2017
(requirement to correct relevant offshore tax non-
compliance).”

(3) In paragraph 3 (meaning of deliberate failure) after paragraph (c) insert—

“(d) 15in the case of a penalty within paragraph 2(d), P was aware
at any time during the RTC period that at the end of the
2016-17 tax year P had relevant offshore tax non-
compliance to correct;

and terms used in paragraph (d) have the same meaning as in
20Schedule 18 to FA 2017.”

(4) In paragraph 5 (meaning of “relevant time”) after sub-paragraph (4) insert—

“(5) Where the original penalty is under paragraph 1 of Schedule 18 to
FA 2017, the relevant time is the time when that Schedule comes
into force.”

25Asset-based penalty in addition to penalty under paragraph 1

28 (1) Schedule 22 to FA 2016 (asset-based penalty for offshore inaccuracies and
failures) is amended as follows.

(2) In paragraph 2 (meaning of standard offshore penalty)—

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

(b) 30after sub-paragraph (4) insert—

“(4A) A penalty falls within this paragraph if—

(a) it is imposed on a person under paragraph 1 of
Schedule 18 to FA 2017 (requirement to correct
relevant offshore tax non-compliance),

(b) 35the person was aware at any time during the RTC
period that at the end of the 2016-17 tax year P had
relevant offshore tax non-compliance to correct,
and

(c) the tax at stake is (or includes) capital gains tax,
40inheritance tax or asset-based income tax.”, and

(c) after sub-paragraph (5) insert—

“(5A) Sub-paragraph (5) does not apply to a penalty imposed
under paragraph 1 of Schedule 18 to FA 2017.”

(3) In paragraph 3 (tax year to which standard offshore penalty relates) after

sub-paragraph (3) insert—

“(4) Where a standard offshore penalty is imposed under paragraph 1
of Schedule 18 to FA 2017, the tax year to which that penalty
relates is—

(a) 5if the tax at stake in relation to the uncorrected relevant
offshore tax non-compliance is income tax or capital gains
tax, the tax year or years to which the failure or inaccuracy
constituting the relevant offshore tax non-compliance in
question relates;

(b) 10if the tax at stake in relation to the uncorrected relevant
offshore tax non-compliance is inheritance tax, the year,
beginning on 6 April and ending on the following 5 April,
in which the liability to tax first arose.

(5) In sub-paragraph (4) references to uncorrected relevant offshore
15tax non-compliance are to the relevant offshore tax non-
compliance in respect of which the standard offshore penalty is
imposed.”

(4) In paragraph 5 (meaning of offshore PLR), in sub-paragraph (1)(a) after “FA
2008” insert “or Schedule 18 to FA 2017”.

(5) 20In paragraph 6 (restriction on imposition of multiple asset-based penalties
for same asset), in sub-paragraph (1)(a) after “penalty” insert “(other than
one imposed under paragraph 1 of Schedule 18 to FA 2017)”.

(6) After paragraph 6 insert—

“6A Where—

(a) 25a penalty has been imposed on a person under paragraph
1 of Schedule 18 to FA 2017, and

(b) the potential loss of revenue threshold has been met,

only one asset-based penalty is payable by the person in relation
to any given asset.”

(7) 30In paragraph 13 (asset-based income tax) after sub-paragraph (2) insert—

“(2A) In relation to cases where the standard offshore penalty is a
penalty falling within paragraph 2(4A), each reference to
provisions of ITTOIA 2005 in column 1 of the Table in sub-
paragraph (2) includes a reference—

(a) 35to the corresponding provisions of the legislation in force
immediately before those provisions of ITTOIA 2005 came
into force (and to any previous text of those corresponding
provisions), and

(b) to any other provision that had the same purpose as, or a
40similar purpose to, any of those corresponding provisions
(or any earlier text mentioned in paragraph (a)), if and so
far as that other provision was in force—

(i) on or after 6 April 1997, but

(ii) before the corresponding provisions (or the earlier
45text mentioned in paragraph (a)) came into force.””

(8) In paragraph 19(2) (interpretation: incorporation of definitions from other
legislation for “or Schedule 55 to FA 2009” substitute “Schedule 55 to FA
2009 or Part 1 of Schedule 18 to FA 2017”.

29 (1) TMA 1970 is amended as follows.

(2) In section 103ZA (disapplication of sections 100 to 103 in the case of certain
penalties) omit the “or” after paragraph (j) and after paragraph (k) insert “, or

(l) Schedule 18 to the Finance Act 2017.”

(3) 5In section 107A (relevant trustees)—

(a) in subsection (2)(a) after “Finance Act 2009” insert or Schedule 18 to
the Finance Act 2017”, and

(b) in subsection (3), after paragraph (c) insert—

“(d) in relation to—

(i) 10a penalty under Schedule 18 to the Finance
Act 2017, or

(ii) interest under section 101 of the Finance Act
2009 on a penalty within sub-paragraph (i),

the end of the RTC period (within the meaning of
15Schedule 18 to the Finance Act 2017);”.

Publishing details of persons assessed to penalty or penalties under paragraph 1

30 (1) The Commissioners for Her Majesty’s Revenue and Customs (“the
Commissioners”) may publish information about a person (P) if in
consequence of an investigation they consider that sub-paragraph (2) or (3)
20applies in relation to P.

(2) This sub-paragraph applies if—

(a) P has been found to have incurred one or more relevant penalties
under paragraph 1 (and has been assessed or is the subject of a
contract settlement), and

(b) 25the offshore potential lost revenue in relation to the penalty, or the
aggregate of the offshore potential lost revenue in relation to each of
the penalties, exceeds £25,000.

(3) This sub-paragraph applies if P has been found to have incurred 5 or more
relevant penalties under paragraph 1.

(4) 30A penalty incurred by P under paragraph 1 is “relevant” if —

(a) P was aware at any time during the RTC period that at the end of the
2016-17 tax year the person had relevant offshore tax non-
compliance to correct, and

(b) the penalty relates to the failure to correct that non-compliance.

(5) 35The information that may be published is—

(a) P’s name (including any trading name, previous name or
pseudonym),

(b) P’s address (or registered office),

(c) the nature of any business carried on by P,

(d) 40the amount of the penalty or penalties,

(e) the offshore potential lost revenue in relation to the penalty or the
aggregate of the offshore potential lost revenue in relation to each of
the penalties,

(f) the periods or times to which the uncorrected relevant offshore tax
45non-compliance relates,

(g) any other information that the Commissioners consider it
appropriate to publish in order to make clear the person’s identity.

(6) In sub-paragraph (5)(f) the reference to the uncorrected relevant offshore tax
non-compliance is to so much of P’s relevant offshore tax non-compliance at
5the end of the 2016-17 tax year as P failed to correct within the RTC period.

(7) The information may be published in any manner that the Commissioners
consider appropriate.

(8) Before publishing any information the Commissioners must—

(a) inform P that they are considering doing so, and

(b) 10afford P the opportunity to make representations about whether it
should be published.

(9) No information may be published before the day on which the penalty
becomes final or, where more than one penalty is involved, the latest day on
which any of the penalties becomes final.

(10) 15No information may be published for the first time after the end of the
period of one year beginning with that day.

(11) No information may be published (or continue to be published) after the end
of the period of one year beginning with the day on which it is first
published.

(12) 20No information may be published if the amount of the penalty—

(a) is reduced under paragraph 16 to the minimum permitted amount
(being 100% of the offshore PLR), or

(b) is reduced under paragraph 17 to nil or stayed.

(13) For the purposes of this paragraph a penalty becomes final—

(a) 25if it has been assessed, when the time for any appeal or further
appeal relating to it expires or, if later, any appeal or final appeal
relating to it is finally determined, and

(b) if a contract settlement has been made, at the time when the contract
is made.

(14) 30In this paragraph “contract settlement”, in relation to a penalty, means a
contract between the Commissioners and the person under which the
Commissioners undertake not to assess the penalty or (if it has been
assessed) not to take proceedings to recover it.

31 (1) The Treasury may by regulations amend paragraph 30(2) to vary the amount
35for the time being specified in paragraph (b).

(2) Regulations under this paragraph are to be made by statutory instrument.

(3) A statutory instrument under this paragraph is subject to annulment in
pursuance of a resolution of the House of Commons.

Part 4 40Supplementary

Interpretation: minor

32 (1) In this Schedule (apart from the amendments made by Part 3)—

Finance BillPage 664

• “HMRC” means Her Majesty’s Revenue and Customs;

• “tax period” means a tax year or other period in respect of which tax is
  charged (or in the case of inheritance tax, the year beginning with 6
  April and ending on the following 5 April in which the liability to tax
  5first arose);

• “tax year”, in relation to inheritance tax, means a period of 12 months
  beginning on 6 April and ending on the following 5 April;

• “UK” means the United Kingdom, including its territorial sea.

(2) A reference to making a return or doing anything in relation to a return
10includes a reference to amending a return or doing anything in relation to an
amended return.

(3) References to delivery (of a document) include giving, sending and any
other similar expressions.

(4) A reference to delivering a document to HMRC includes—

(a) 15a reference to communicating information to HMRC in any form and
by any method (whether by post, fax, email, telephone or otherwise,
and

(b) a reference to making a statement or declaration in a document.

(5) References to an assessment to tax, in relation to inheritance tax, are to a
20determination.

(6) An expression used in relation to income tax has the same meaning as in the
Income Tax Acts.

(7) An expression used in relation to capital gains tax has the same meaning as
in the enactments relating to that tax.

(8) 25An expression used in relation to inheritance tax has the same meaning as in
IHTA 1984.

Terms defined or explained for purposes of more than one paragraph of this Schedule