|
| |
|
23P | Offences arising from breach of requirements under sections 23M and |
| |
| |
(1) | A person mentioned in paragraph (a) of subsection (1) of section 23M |
| |
of this Act who, having been required— |
| |
(a) | under that subsection to give the information mentioned in |
| 5 |
subsection (2) of that section; |
| |
(b) | under subsection (3) of that section to remain with an officer; |
| |
| |
(c) | under subsection (1) of section 23N of this Act to provide that |
| |
person’s fingerprints or a record such as is mentioned in |
| 10 |
paragraph (b) of that subsection, |
| |
| fails, without reasonable excuse, to do so, shall be guilty of an offence |
| |
and liable on summary conviction to a fine not exceeding level 3 on |
| |
| |
(2) | A person mentioned in paragraph (b) of subsection (1) of section 23M |
| 15 |
of this Act who, having been required under that subsection to give |
| |
the information mentioned in subsection (2) of that section, fails, |
| |
without reasonable excuse, to do so, shall be guilty of an offence and |
| |
liable on summary conviction to a fine not exceeding level 2 on the |
| |
| 20 |
(3) | An authorised officer may arrest without warrant any person whom |
| |
the officer has reasonable grounds for suspecting has committed an |
| |
offence under subsection (1) or (2) above.” |
| |
4 | In section 24 (detention and questioning by customs officers)— |
| |
| 25 |
(i) | for “an offence punishable by imprisonment relating to an |
| |
assigned matter” substitute “a Revenue and Customs offence |
| |
punishable by imprisonment”, |
| |
(ii) | for “a customs office” substitute “an office of Revenue and |
| |
| 30 |
(iii) | for “customs office”, in the second place, substitute “office of |
| |
| |
(b) | in subsection (5), for “customs office” (in both places) substitute |
| |
“office of Revenue and Customs”, |
| |
| 35 |
(i) | for “his name and address” substitute “the information |
| |
mentioned in subsection (8A) below”, and |
| |
(ii) | for “customs office” substitute “office of Revenue and |
| |
| |
(d) | after that subsection insert— |
| 40 |
“(8A) | That information is— |
| |
| |
(b) | the person’s address; |
| |
(c) | the person’s date of birth; |
| |
(d) | the person’s place of birth (in such detail as the officer |
| 45 |
considers necessary or expedient for the purpose of |
| |
establishing that person’s identify); and |
| |
(e) | the person’s nationality.”, |
| |
(e) | omit subsection (9), and |
| |
|
| |
|
| |
|
(f) | the heading accordingly becomes “Detention and questioning at |
| |
office of Revenue and Customs”. |
| |
5 | In section 25(1) (right to have someone informed of the fact of detention)— |
| |
(a) | for “a customs office” substitute “an office of Revenue and Customs”, |
| |
| 5 |
(b) | for “customs office”, in the second and third places, substitute “office |
| |
| |
6 | In section 26 (detention in connection with drug smuggling offences), for “a |
| |
customs office” (in both places) substitute “an office of Revenue and |
| |
| 10 |
7 | After that section insert— |
| |
| |
| |
| Where an authorised officer has reasonable grounds for suspecting |
| |
that a Revenue and Customs offence has been or is being committed, |
| 15 |
the officer may arrest without warrant any person whom the officer |
| |
has reasonable grounds for suspecting to be guilty of the offence. |
| |
| |
26B | Interpretation of Part 3 etc |
| |
(1) | In this Part of this Act— |
| 20 |
“authorised officer” means an officer acting with the authority |
| |
(which may be general or specific) of the Commissioners for |
| |
Her Majesty’s Revenue and Customs; |
| |
“office of Revenue and Customs” means premises wholly or |
| |
partly occupied by Her Majesty’s Revenue and Customs; and |
| 25 |
“officer” means an officer of Revenue and Customs. |
| |
(2) | In any proceedings (whether civil or criminal) under or arising from |
| |
this Part of this Act, a certificate of the Commissioners for Her |
| |
Majesty’s Revenue and Customs that an officer had authority to |
| |
exercise a power or function conferred by a provision of this Part |
| 30 |
shall be conclusive proof of that fact.” |
| |
Criminal Procedure (Scotland) Act 1995 (c. 46) |
| |
8 | Section 307 of the Criminal Procedure (Scotland) Act 1995 (interpretation) is |
| |
| |
9 | In subsection (1), in the definition of “officer of law”, for paragraph (ba) |
| 35 |
| |
“(ba) | subject to subsection (1A) below, an officer of Revenue and |
| |
Customs acting with the authority (which may be general |
| |
or specific) of the Commissioners for Her Majesty’s |
| |
| 40 |
|
| |
|
| |
|
10 | After that subsection insert— |
| |
“(1A) | The inclusion of officers of Revenue and Customs as “officers of law” |
| |
shall not have effect in relation to any matter specified in— |
| |
(a) | section 54(4)(b) or (f) of; or |
| |
(b) | paragraphs 3, 7, 10, 13 to 15, 19 or 24 to 29 of Schedule 1 to, |
| 5 |
| the Commissioners for Revenue and Customs Act 2005 (former |
| |
| |
(1B) | In any proceedings (whether civil or criminal) under or arising from |
| |
this Act, a certificate of the Commissioners for Her Majesty’s |
| |
Revenue and Customs that an officer of Revenue and Customs had |
| 10 |
the authority to exercise a power or function conferred by a |
| |
provision of this Act shall be conclusive evidence of that fact.” |
| |
Criminal Justice and Police Act 2001 (c. 16) |
| |
11 | The Criminal Justice and Police Act 2001 is amended as follows. |
| |
12 | In section 63(2) (powers to obtain hard copies etc of information stored in |
| 15 |
electronic form), after paragraph (g) insert— |
| |
“(ga) | section 23E(5)(b) (as read with section 23K(2)) of the Criminal |
| |
Law (Consolidation) (Scotland) Act 1995;”. |
| |
| |
(a) | in Part 1, after paragraph 59 insert— |
| 20 |
“Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39) |
| |
59A | The power of seizure conferred by section 23E(3) of the |
| |
Criminal Law (Consolidation) (Scotland) Act 1995 (seizure |
| |
of evidence of Revenue and Customs offences).”, and |
| |
(b) | in Part 2, after paragraph 81 insert— |
| 25 |
“Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39) |
| |
81A | The power of seizure conferred by section 23E(3) (as read |
| |
with section 23E(5)(c)) of the Criminal Law |
| |
(Consolidation) (Scotland) Act 1995 (seizure of evidence of |
| |
Revenue and Customs offences).” |
| 30 |
14 (1) | The amendments made by this Schedule come into force in accordance with |
| |
provision made by the Treasury by order. |
| |
(2) | The power to make an order under this paragraph is exercisable by statutory |
| |
| |
|
| |
|
| |
|
| |
| |
| |
| |
| |
Error in taxpayer’s document |
| 5 |
1 (1) | A penalty is payable by a person (P) where— |
| |
(a) | P gives HMRC a document of a kind listed in the Table below, and |
| |
(b) | Conditions 1 and 2 are satisfied. |
| |
(2) | Condition 1 is that the document contains an inaccuracy which amounts to, |
| |
| 10 |
(a) | an understatement of P’s liability to tax, |
| |
(b) | a false or inflated statement of a loss by P, or |
| |
(c) | a false or inflated claim to repayment of tax. |
| |
(3) | Condition 2 is that the inaccuracy was careless or deliberate (within the |
| |
| 15 |
(4) | Where a document contains more than one inaccuracy, a penalty is payable |
| |
| |
| | | | | | Income tax or capital gains tax |
| Return under section 8 of TMA 1970 |
| | | | | | | 20 | | Income tax or capital gains tax |
| Return under section 8A of TMA |
| | | | | | | | | Income tax or capital gains tax |
| Return, statement or declaration in |
| | | | | connection with a claim for an |
| | | | | allowance, deduction or relief. |
| | 25 | | Income tax or capital gains tax |
| Accounts in connection with |
| | | | | ascertaining liability to tax. |
| | | | Income tax or capital gains tax |
| | | | | Income tax or capital gains tax |
| Statement or declaration in |
| | | | | connection with a partnership |
| | 30 | | | | | | | Income tax or capital gains tax |
| Accounts in connection with a |
| | | | | | | | | | Return for the purposes of PAYE |
| | | | | | | 35 | | Construction industry deductions |
| Return for the purposes of |
| | | | | regulations under section 70(1)(a) of |
| | | | | FA 2004 in connection with |
| | | | | deductions on account of tax under |
| | | | | the Construction Industry Scheme. |
| | 40 |
|
|
| |
|
| |
|
| | | | | | | | | | | | paragraph 3 of Schedule 18 to FA |
| | | | | | | | | | Return, statement or declaration in |
| | 5 | | | connection with a claim for an |
| | | | | allowance, deduction or relief. |
| | | | | Accounts in connection with |
| | | | | ascertaining liability to tax. |
| | | | | VAT return under regulations made |
| | 10 | | | under paragraph 2 of Schedule 11 to |
| | | | | | | | | | Return, statement or declaration in |
| | | | | | | | | Income tax, capital gains tax, |
| Any document which is likely to be |
| | 15 | | | relied upon by HMRC to determine, |
| | | | | without further inquiry, a question |
| | | | | | | | | | (a) | P’s liability to tax, |
| | | | | (b) | payments by P by way of |
| | 20 | | | or in connection with tax, |
| | | | | (c) | any other payment by P |
| | | | | (including penalties), or |
| | | | | (d) | repayments, or any other |
| | | | | kind of payment or credit, |
| | 25 | | | | | |
|
|
| |
2 (1) | A penalty is payable by a person (P) where— |
| |
(a) | an assessment issued to P by HMRC understates P’s liability to tax, |
| |
| 30 |
(b) | P has failed to take reasonable steps to notify HMRC, within the |
| |
period of 30 days beginning with the date of the assessment, that it is |
| |
| |
(2) | In deciding what steps (if any) were reasonable HMRC must consider— |
| |
(a) | whether P knew, or should have known, about the under- |
| 35 |
| |
(b) | what steps would have been reasonable to take to notify HMRC. |
| |
(3) | In sub-paragraph (1) “tax” means— |
| |
| |
| 40 |
| |
| |
| |
3 (1) | Inaccuracy in a document given by P to HMRC is— |
| |
(a) | “careless” if the inaccuracy is due to failure by P to take reasonable |
| 45 |
| |
(b) | “deliberate but not concealed” if the inaccuracy is deliberate but P |
| |
does not make arrangements to conceal it, and |
| |
|
| |
|
| |
|
(c) | “deliberate and concealed” if the inaccuracy is deliberate and P |
| |
makes arrangements to conceal it (for example, by submitting false |
| |
evidence in support of an inaccurate figure). |
| |
(2) | An inaccuracy in a document given by P to HMRC, which was neither |
| |
careless nor deliberate when the document was given, is to be treated as |
| 5 |
| |
(a) | discovered the inaccuracy at some later time, and |
| |
(b) | did not take reasonable steps to inform HMRC. |
| |
| |
| 10 |
| |
4 (1) | The penalty payable under paragraph 1 is— |
| |
(a) | for careless action, 30% of the potential lost revenue, |
| |
(b) | for deliberate but not concealed action, 70% of the potential lost |
| |
| 15 |
(c) | for deliberate and concealed action, 100% of the potential lost |
| |
| |
(2) | The penalty payable under paragraph 2 is 30% of the potential lost revenue. |
| |
(3) | Paragraphs 5 to 8 define “potential lost revenue”. |
| |
Potential lost revenue: normal rule |
| 20 |
5 (1) | “The potential lost revenue” in respect of an inaccuracy in a document or a |
| |
failure to notify an under-assessment is the additional amount due or |
| |
payable in respect of tax as a result of correcting the inaccuracy or |
| |
| |
(2) | The reference in sub-paragraph (1) to the additional amount due or payable |
| 25 |
| |
(a) | an amount payable to HMRC having been erroneously paid by way |
| |
| |
(b) | an amount which would have been repayable by HMRC had the |
| |
inaccuracy or assessment not been corrected. |
| 30 |
(3) | In sub-paragraph (1) “tax” includes national insurance contributions. |
| |
(4) | The following shall be ignored in calculating potential lost revenue under |
| |
| |
| |
(b) | section 419(4) of ICTA (close company: relief for loans); |
| 35 |
| (but this sub-paragraph does not prevent a penalty being charged in respect |
| |
of an inaccurate claim for relief). |
| |
Potential lost revenue: multiple errors |
| |
6 (1) | Where P is liable to a penalty in respect of more than one inaccuracy, and the |
| |
calculation of potential lost revenue under paragraph 5 in respect of each |
| 40 |
inaccuracy depends on the order in which they are corrected— |
| |
|
| |
|
| |
|
(a) | careless inaccuracies shall be taken to be corrected before deliberate |
| |
| |
(b) | deliberate but not concealed inaccuracies shall be taken to be |
| |
corrected before deliberate and concealed inaccuracies. |
| |
(2) | In calculating potential lost revenue where P is liable to a penalty in respect |
| 5 |
of one or more understatements in one or more documents relating to a tax |
| |
period, account shall be taken of any overstatement in any document given |
| |
by P which relates to the same tax period. |
| |
(3) | In sub-paragraph (2)— |
| |
(a) | “understatement” means an inaccuracy that satisfies Condition 1 of |
| 10 |
| |
(b) | “overstatement” means an inaccuracy that does not satisfy that |
| |
| |
(4) | For the purposes of sub-paragraph (2) overstatements shall be set against |
| |
understatements in the following order— |
| 15 |
(a) | understatements in respect of which P is not liable to a penalty, |
| |
(b) | careless understatements, |
| |
(c) | deliberate but not concealed understatements, and |
| |
(d) | deliberate and concealed understatements. |
| |
(5) | In calculating potential lost revenue in respect of a document given by or on |
| 20 |
behalf of P no account shall be taken of the fact that a potential loss of |
| |
revenue from P is or may be balanced by a potential over-payment by |
| |
another person (except to the extent that an enactment requires or permits a |
| |
person’s tax liability to be adjusted by reference to P’s). |
| |
Potential lost revenue: losses |
| 25 |
7 (1) | Where an inaccuracy has the result that a loss is wrongly recorded for |
| |
purposes of direct tax and the loss has been wholly used to reduce the |
| |
amount due or payable in respect of tax, the potential lost revenue is |
| |
calculated in accordance with paragraph 5. |
| |
(2) | Where an inaccuracy has the result that a loss is wrongly recorded for |
| 30 |
purposes of direct tax and the loss has not been wholly used to reduce the |
| |
amount due or payable in respect of tax, the potential lost revenue is— |
| |
(a) | the potential lost revenue calculated in accordance with paragraph 5 |
| |
in respect of any part of the loss that has been used to reduce the |
| |
amount due or payable in respect of tax, plus |
| 35 |
(b) | 10% of any part that has not. |
| |
(3) | Sub-paragraphs (1) and (2) apply both— |
| |
(a) | to a case where no loss would have been recorded but for the |
| |
| |
(b) | to a case where a loss of a different amount would have been |
| 40 |
recorded (but in that case sub-paragraphs (1) and (2) apply only to |
| |
the difference between the amount recorded and the true amount). |
| |
(4) | Where an inaccuracy has the effect of creating or increasing an aggregate |
| |
loss recorded for a group of companies— |
| |
(a) | the potential lost revenue shall be calculated in accordance with this |
| 45 |
| |
|
| |
|