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Finance (No.2) Bill


Finance (No.2) Bill
Part 9 — Miscellaneous provisions

142

 

   

the supply is to be regarded as made at the time when he produced that

particular quantity of the taxable commodity.

(7)   

In paragraph 34 of Schedule 6 to FA 2000 (deemed supplies of commodities

other than electricity and certain gas), in sub-paragraph (2) omit the words

“(or, in the case of electricity, consumed)” (which are unnecessary, because the

5

paragraph does not apply in the case of electricity).

(8)   

In consequence of subsection (1), Schedule 6 to FA 2000 (climate change levy)

is amended as follows.

(9)   

In paragraph 37 (supplies of electricity or gas spanning change of rate etc) in

sub-paragraph (1)(c) omit “half-rate supplies or”.

10

(10)   

In paragraph 38 (other supplies spanning change of rate etc) in sub-paragraph

(1)(c) omit “half-rate supplies or”.

(11)   

In paragraph 42(1) (amount payable by way of levy)—

(a)   

in paragraph (a), for “ neither a half-rate supply nor” substitute “not”;

(b)   

omit paragraph (b);

15

(c)   

in paragraph (c), for “ neither a half-rate supply nor” substitute “not”;

(d)   

in the Table (and in the Table substituted for it by section 171 of this

Act), in the heading to column (2), for “ neither a half-rate supply nor”

substitute “not”.

(12)   

Paragraph 43 (half-rate for supplies to horticultural producers) shall cease to

20

have effect.

(13)   

In paragraph 62 (tax credits) in subsection (1)—

(a)   

in paragraph (c)—

(i)   

for “ neither a half-rate supply nor” substitute “not”;

(ii)   

omit “half-rate or”;

25

(b)   

omit paragraph (d).

(14)   

In paragraph 101 (civil penalties: incorrect notifications) in sub-paragraph

(2)(a)—

(a)   

at the end of sub-paragraph (ii) insert “or”;

(b)   

omit sub-paragraph (iii).

30

(15)   

In paragraph 147 (interpretation: general) omit the definition of “half-rate

supply”.

(16)   

Subsections (8) to (15) come into force on such day as the Treasury may by

order made by statutory instrument appoint.

(17)   

The power to make an order under subsection (16)—

35

(a)   

may be exercised so as to bring a provision into force only in such cases

as may be described in the order,

(b)   

may be exercised so as to make different provision for different cases or

descriptions of case,

(c)   

includes power to make incidental, consequential, supplemental or

40

transitional provision or savings.

 
 

Finance (No.2) Bill
Part 9 — Miscellaneous provisions

143

 

International tax arrangements

173     

International tax enforcement arrangements

(1)   

If Her Majesty by Order in Council declares that—

(a)   

arrangements relating to international tax enforcement which are

specified in the Order have been made in relation to any territory or

5

territories outside the United Kingdom, and

(b)   

it is expedient that those arrangements have effect,

   

those arrangements have effect (and do so in spite of anything in any

enactment or instrument).

(2)   

For the purposes of subsection (1) arrangements relate to international tax

10

enforcement if they relate to any or all of the following—

(a)   

the exchange of information foreseeably relevant to the administration,

enforcement or recovery of any UK tax or foreign tax;

(b)   

the recovery of debts relating to any UK tax or foreign tax;

(c)   

the service of documents relating to any UK tax or foreign tax.

15

(3)   

In this section—

“UK tax” means any tax or duty imposed under the domestic law of the

United Kingdom, and

“foreign tax” means any tax or duty imposed under the law of the

territory, or any of the territories, in relation to which the arrangements

20

have been made.

(4)   

Where any arrangements have effect by virtue of this section, no obligation of

secrecy (whether imposed by statute or otherwise)—

(a)   

prevents any Minister of the Crown, or person with responsibilities in

any government department, from disclosing to the Commissioners for

25

Her Majesty’s Revenue and Customs or any authorised Revenue and

Customs official any information which is authorised to be disclosed in

accordance with the arrangements to any authorised officer of the

authorities of the territory, or any of the territories, in relation to which

the arrangements have been made, or

30

(b)   

prevents the Commissioners for Her Majesty’s Revenue and Customs

or any authorised Revenue and Customs official from disclosing to any

such authorised officer any information which is authorised to be so

disclosed in accordance with the arrangements.

(5)   

But neither the Commissioners for Her Majesty’s Revenue and Customs nor

35

any authorised Revenue and Customs official may disclose any information in

pursuance of any arrangements having effect by virtue of this section to any

authorised officer of the authorities of the territory, or any of the territories, in

relation to which the arrangements have been made unless satisfied that the

authorities of the territory concerned are bound by, or have undertaken to

40

observe, rules of confidentiality with respect to the information which are not

less strict than those applying to it in the United Kingdom.

(6)   

An Order in Council made under this section revoking an earlier such Order

may contain any transitional provisions that appear appropriate.

(7)   

An Order under this section is not to be submitted to Her Majesty in Council

45

unless a draft of the Order has been laid before and approved by a resolution

of the House of Commons.

 
 

Finance (No.2) Bill
Part 9 — Miscellaneous provisions

144

 

(8)   

Any provisions which—

(a)   

are included in an Order in Council made under any of the provisions

specified in subsection (10),

(b)   

are in force immediately before the passing of this Act, and

(c)   

could have been included in an Order in Council under this section had

5

the Order in Council been made after that time,

   

have effect after that time as if included in an Order in Council under this

section.

(9)   

If any such provisions relate to arrangements covering UK taxes or foreign

taxes (or both) other than those in relation to which the Order in Council had

10

effect, the provisions also have effect after the passing of this Act (by virtue of

subsection (8)) in relation to those other UK taxes or foreign taxes (or both).

(10)   

The provisions referred to in subsection (8)(a) are—

(a)   

sections 788 and 815C of ICTA (international arrangements relating to

income tax, corporation tax and capital gains tax and analogous foreign

15

taxes), and

(b)   

sections 158 and 220A of IHTA 1984 (international arrangements

relating to inheritance tax and analogous foreign taxes).

(11)   

In this section “Revenue and Customs official” has the same meaning as in

section 18 of the Commissioners for Revenue and Customs Act 2005 (c. 11)

20

(confidentiality).

174     

Arrangements under section 173: information powers

(1)   

Subsections (1) to (8) and (8C) to (9) of section 20 of TMA 1970 (powers to call

for information relevant to liability to income tax, corporation tax or capital

gains tax), and sections 20B, 20BB and 20D of that Act so far as relating to those

25

subsections, have effect as if—

(a)   

the references in those provisions to tax liability included liability to

relevant foreign tax, and

(b)   

the references to tax included relevant foreign tax,

   

(but subject to subsection (3)).

30

(2)   

“Relevant foreign tax” means any tax or duty—

(a)   

imposed under the law of a territory in relation to which arrangements

having effect by virtue of section 173 have been made, and

(b)   

covered by the arrangements.

(3)   

In their application by virtue of subsection (1) the provisions mentioned in that

35

subsection have effect as if—

(a)   

the reference in section 20(7A) to any provision of the Taxes Acts were

to any provision of the law of the territory concerned,

(b)   

the reference in subsection (2) of section 20B to an appeal were to an

appeal, review or similar proceedings under the law of that territory,

40

and

(c)   

the reference in subsection (6) of that section to the Crown were to that

territory.

 
 

Finance (No.2) Bill
Part 9 — Miscellaneous provisions

145

 

175     

Arrangements under section 173: recovery of debts

(1)   

The Treasury may by regulations make provision for the recovery in the

United Kingdom of debts relating to any relevant foreign tax pursuant to

arrangements having effect by virtue of section 173.

(2)   

“Relevant foreign tax” means any tax or duty—

5

(a)   

imposed under the law of a territory in relation to which such

arrangements have been made, and

(b)   

covered by the arrangements.

(3)   

Regulations under this section may make provision for the taking of action to

recover debts relating to any relevant foreign tax by way of legal proceedings,

10

distress, diligence or otherwise.

(4)   

Such provision may in particular be made by applying, with any appropriate

modifications, any enactment or rule of law that applies in relation to the

recovery of any tax or duty imposed under the domestic law of the United

Kingdom (including any enactment relating to penalties or interest on unpaid

15

amounts).

(5)   

The power to make regulations under this section is exercisable by statutory

instrument.

(6)   

A statutory instrument containing regulations under this section is subject to

annulment in pursuance of a resolution of the House of Commons.

20

176     

Double taxation agreements: procedure

In section 788 of ICTA (relief by agreement with other territories), for

subsection (10) substitute—

“(10)   

An Order under this section is not to be submitted to Her Majesty in

Council unless a draft of the Order has been laid before and approved

25

by a resolution of the House of Commons.”

Disclosure of information

177     

Disclosure of information

(1)   

After section 352 of the Gambling Act 2005 (c. 19) (disclosure of information:

data protection) insert—

30

“352A   

Wrongful disclosure

(1)   

Where the Commissioners for Her Majesty’s Revenue and Customs

provide information to a person under this Act, section 19 of the

Commissioners for Revenue and Customs Act 2005 (c. 11) (wrongful

disclosure) shall apply to the disclosure of the information by the

35

person as it applies to the disclosure of information in contravention of

a provision of that Act.

(2)   

But section 19 shall not apply to disclosure—

(a)   

in accordance with this Act,

(b)   

in accordance with another enactment, or

40

(c)   

in circumstances specified in section 18(2)(c), (d), (e) or (h) of

that Act.

 
 

Finance (No.2) Bill
Part 10 — Supplementary provisions

146

 

(3)   

In subsection (1)—

(a)   

information provided to a person shall be treated as being

provided both to him and to any person on whose behalf he acts

or by whom he is employed, and

(b)   

the reference to disclosure by the person to whom information

5

was provided includes a reference to disclosure by any person

acting on behalf of, or employed by, the person to whom the

information was provided (or a person to whom it is treated as

being provided by virtue of paragraph (a)).

(4)   

In the application of section 18(2)(c) and (d) of that Act by virtue of

10

subsection (2)(c) above a reference to functions of the Revenue and

Customs shall be taken as a reference to functions of the person making

the disclosure.

(5)   

In the application of section 19 of that Act by virtue of subsection (1)

above “revenue and customs information” means information

15

provided by the Commissioners (but subject to the express exclusion in

section 19(2)).

(6)   

Section 19 of that Act shall, in so far as it applies by virtue of this section,

be treated for the purposes of section 28 of this Act as an offence under

this Act.”

20

(2)   

Section 352A of the Gambling Act 2005 as inserted by subsection (1) above shall

come into force on the passing of this Act.

Part 10

Supplementary provisions

178     

Repeals

25

(1)   

The enactments mentioned in Schedule 26 (which include provisions that are

spent or of no practical utility) are repealed to the extent specified.

(2)   

The repeals specified in that Schedule have effect subject to the commencement

provisions and savings contained or referred to in the notes set out in that

Schedule.

30

179     

Interpretation

In this Act—

“ALDA 1979” means the Alcoholic Liquor Duties Act 1979 (c. 4);

“CAA 2001” means the Capital Allowances Act 2001 (c. 2);

“FA”, followed by a year, means the Finance Act of that year;

35

“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year;

“HODA 1979” means the Hydrocarbon Oil Duties Act 1979 (c. 5);

“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1);

“IHTA 1984” means the Inheritance Tax Act 1984 (c. 51);

“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003

40

(c. 1);

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act

2005 (c. 5);

 
 

Finance (No.2) Bill
Part 10 — Supplementary provisions

147

 

“OTA 1975” means the Oil Taxation Act 1975 (c. 22);

“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12);

“TMA 1970” means the Taxes Management Act 1970 (c. 9);

“VATA 1994” means the Value Added Tax Act 1994 (c. 23);

“VERA 1994” means the Vehicle Excise and Registration Act 1994 (c. 22).

5

180     

Short title

This Act may be cited as the Finance Act 2006.

 
 

 
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