|
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|
| |
| |
Information and inspection powers |
| |
| |
Powers to obtain information and documents |
| |
Power to obtain information and documents from taxpayer |
| 5 |
1 (1) | An officer of Revenue and Customs may by notice in writing require a |
| |
| |
(a) | to provide information, or |
| |
(b) | to produce a document, |
| |
| if the information or document is reasonably required by the officer for the |
| 10 |
purpose of checking the taxpayer’s tax position. |
| |
(2) | In this Schedule, “taxpayer notice” means a notice under this paragraph. |
| |
Power to obtain information and documents from third party |
| |
2 (1) | An officer of Revenue and Customs may by notice in writing require a |
| |
| 15 |
(a) | to provide information, or |
| |
(b) | to produce a document, |
| |
| if the information or document is reasonably required by the officer for the |
| |
purpose of checking the tax position of another person whose identity is |
| |
known to the officer (“the taxpayer”). |
| 20 |
(2) | A third party notice must name the taxpayer to whom it relates, unless the |
| |
First-tier Tribunal has approved the giving of the notice and disapplied this |
| |
requirement under paragraph 3. |
| |
(3) | In this Schedule, “third party notice” means a notice under this paragraph. |
| |
Approval etc of taxpayer notices and third party notices |
| 25 |
3 (1) | An officer of Revenue and Customs may not give a third party notice |
| |
| |
(a) | the agreement of the taxpayer, or |
| |
(b) | the approval of the First-tier Tribunal. |
| |
(2) | An officer of Revenue and Customs may ask for the approval of the First-tier |
| 30 |
Tribunal to the giving of any taxpayer notice or third party notice (and for |
| |
the effect of obtaining such approval see paragraphs 27, 28 and 51 (appeals |
| |
against notices and offence)). |
| |
(3) | The First-tier Tribunal may not approve the giving of a taxpayer notice or |
| |
third party notice unless— |
| 35 |
(a) | an application for approval is made by, or with the agreement of, an |
| |
authorised officer of Revenue and Customs, |
| |
(b) | the Tribunal is satisfied that, in the circumstances, the officer giving |
| |
the notice is justified in doing so, |
| |
(c) | the person to whom the notice is addressed has been told that the |
| 40 |
information or documents referred to in the notice are required and |
| |
|
| |
|
| |
|
given a reasonable opportunity to make representations to an officer |
| |
| |
(d) | the First-tier Tribunal has been given a summary of any |
| |
representations made by that person, and |
| |
(e) | in the case of a third party notice, the taxpayer has been given a |
| 5 |
summary of the reasons why an officer of Revenue and Customs |
| |
requires the information and documents. |
| |
(4) | Paragraphs (c) to (e) of sub-paragraph (3) do not apply to the extent that the |
| |
First-tier Tribunal is satisfied that taking the action specified in those |
| |
paragraphs might prejudice the assessment or collection of tax. |
| 10 |
(5) | Where the First-tier Tribunal approves the giving of a third party notice |
| |
under this paragraph, it may also disapply the requirement to name the |
| |
taxpayer in the notice if it is satisfied that the officer has reasonable grounds |
| |
for believing that naming the taxpayer might seriously prejudice the |
| |
assessment or collection of tax. |
| 15 |
Copying third party notice to taxpayer |
| |
4 (1) | An officer of Revenue and Customs who gives a third party notice must give |
| |
a copy of the notice to the taxpayer to whom it relates, unless the First-tier |
| |
Tribunal has disapplied this requirement. |
| |
(2) | The First-tier Tribunal may not disapply that requirement unless— |
| 20 |
(a) | an application for approval is made by, or with the agreement of, an |
| |
authorised officer of Revenue and Customs, and |
| |
(b) | the Tribunal is satisfied that the officer has reasonable grounds for |
| |
believing that giving a copy of the notice to the taxpayer might |
| |
prejudice the assessment or collection of tax. |
| 25 |
Power to obtain information and documents about persons whose identity is not known |
| |
5 (1) | An authorised officer of Revenue and Customs may by notice in writing |
| |
| |
(a) | to provide information, or |
| |
(b) | to produce a document, |
| 30 |
| if the condition in sub-paragraph (2) is met. |
| |
(2) | That condition is that the information or document is reasonably required by |
| |
the officer for the purpose of checking the UK tax position of— |
| |
(a) | a person whose identity is not known to the officer, or |
| |
(b) | a class of persons whose individual identities are not known to the |
| 35 |
| |
(3) | An officer of Revenue and Customs may not give a notice under this |
| |
paragraph without the approval of the First-tier Tribunal. |
| |
(4) | The First-tier Tribunal may not give its approval for the purpose of this |
| |
paragraph unless it is satisfied that— |
| 40 |
(a) | the notice would meet the condition in sub-paragraph (2), |
| |
(b) | there are reasonable grounds for believing that the person or any of |
| |
the class of persons to whom the notice relates may have failed or |
| |
may fail to comply with any provision of the Taxes Acts, VATA 1994 |
| |
|
| |
|
| |
|
or any other enactment relating to value added tax charged in |
| |
accordance with that Act, |
| |
(c) | any such failure is likely to have led or to lead to serious prejudice to |
| |
the assessment or collection of UK tax, and |
| |
(d) | the information or document to which the notice relates is not readily |
| 5 |
available from another source. |
| |
(5) | In this paragraph “UK tax” means any tax other than relevant foreign tax |
| |
and value added tax charged in accordance with the law of another member |
| |
| |
| 10 |
6 (1) | In this Schedule, “information notice” means a notice under paragraph 1, 2 |
| |
| |
(2) | An information notice may specify or describe the information or |
| |
documents to be provided or produced. |
| |
(3) | If an information notice is given with the approval of the First-tier Tribunal, |
| 15 |
it must state that it is given with that approval. |
| |
| |
7 (1) | Where a person is required by an information notice to provide information |
| |
or produce a document, the person must do so— |
| |
(a) | within such period, and |
| 20 |
(b) | at such time, by such means and in such form (if any), |
| |
| as is reasonably specified or described in the notice. |
| |
(2) | Where an information notice requires a person to produce a document, it |
| |
must be produced for inspection— |
| |
(a) | at a place agreed to by that person and an officer of Revenue and |
| 25 |
| |
(b) | at such place as an officer of Revenue and Customs may reasonably |
| |
| |
(3) | An officer of Revenue and Customs must not specify a place that is used |
| |
| 30 |
(4) | The production of a document in compliance with an information notice is |
| |
not to be regarded as breaking any lien claimed on the document. |
| |
Producing copies of documents |
| |
8 (1) | Where an information notice requires a person to produce a document, the |
| |
person may comply with the notice by producing a copy of the document, |
| 35 |
subject to any conditions or exceptions set out in regulations made by the |
| |
| |
(2) | Sub-paragraph (1) does not apply where— |
| |
(a) | the notice requires the person to produce the original document, or |
| |
(b) | an officer of Revenue and Customs subsequently makes a request in |
| 40 |
writing to the person for the original document. |
| |
|
| |
|
| |
|
(3) | Where an officer of Revenue and Customs requests a document under sub- |
| |
paragraph (2)(b), the person to whom the request is made must produce the |
| |
| |
(a) | within such period, and |
| |
(b) | at such time and by such means (if any), |
| 5 |
| as is reasonably requested by the officer. |
| |
Restrictions and special cases |
| |
9 | This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule. |
| |
| |
Powers to inspect businesses etc |
| 10 |
Power to inspect business premises etc |
| |
10 (1) | An officer of Revenue and Customs may enter any business premises and |
| |
| |
| |
(b) | business assets that are on the premises, and |
| 15 |
(c) | business documents that are on the premises, |
| |
| if the inspection is reasonably required for the purpose of checking the tax |
| |
| |
(2) | An inspection under this paragraph may be carried out at any reasonable |
| |
time, subject to sub-paragraph (3). |
| 20 |
(3) | An inspection may not be carried out unless— |
| |
(a) | the occupier of the premises has been given at least 24 hours’ notice |
| |
(whether in writing or otherwise), or |
| |
(b) | the inspection is carried out by, or with the agreement of, an |
| |
authorised officer of Revenue and Customs. |
| 25 |
(4) | An officer of Revenue and Customs seeking to carry out an inspection under |
| |
sub-paragraph (3)(b) must provide a notice in writing as follows— |
| |
(a) | if the occupier of the premises is present at the time the inspection is |
| |
to begin, the notice must be provided to the occupier, |
| |
(b) | if the occupier of the premises is not present but a person who |
| 30 |
appears to the officer to be in charge of the premises is present, the |
| |
notice must be provided to that person, and |
| |
(c) | in any other case, the notice must be left in a prominent place on the |
| |
| |
(5) | The notice referred to in sub-paragraph (4) must state the possible |
| 35 |
consequences of obstructing the officer in the exercise of the power. |
| |
(6) | If a notice referred to in sub-paragraph (4) is given with the approval of the |
| |
First-tier Tribunal (see paragraph 11), it must state that it is given with that |
| |
| |
| 40 |
“business assets” means assets that an officer of Revenue and Customs |
| |
has reason to believe are owned, leased or used in connection with |
| |
the carrying on of any business, excluding documents, |
| |
|
| |
|
| |
|
“business documents” means documents (or copies of documents)— |
| |
(a) | that relate to the carrying on of any business, and |
| |
(b) | that form part of any person’s statutory records, |
| |
“business premises” means premises (or any part of premises) that an |
| |
officer of Revenue and Customs has reason to believe are (or is) used |
| 5 |
in connection with the carrying on of a business, and |
| |
| |
(a) | any building or structure, |
| |
| |
(c) | any means of transport. |
| 10 |
Approval of First-tier Tribunal |
| |
11 (1) | An officer of Revenue and Customs may ask the First-tier Tribunal to |
| |
approve an inspection under this Part of this Schedule. |
| |
(2) | The First-tier Tribunal may not approve an inspection unless— |
| |
(a) | an application for approval is made by, or with the agreement of, an |
| 15 |
authorised officer of Revenue and Customs, and |
| |
(b) | the Tribunal is satisfied that, in the circumstances, the inspection is |
| |
| |
Restrictions and special cases |
| |
12 | This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule. |
| 20 |
| |
| |
| |
13 | Where a document (or a copy of a document) is produced to, or inspected |
| |
by, an officer of Revenue and Customs, such an officer may take copies of, |
| 25 |
or make extracts from, the document. |
| |
Power to remove documents |
| |
14 (1) | Where a document is produced to, or inspected by, an officer of Revenue |
| |
and Customs, such an officer may— |
| |
(a) | remove the document at a reasonable time, and |
| 30 |
(b) | retain it for a reasonable period, |
| |
| if it appears to the officer to be necessary to do so. |
| |
(2) | Where a document is removed in accordance with sub-paragraph (1), the |
| |
person who produced the document may request— |
| |
(a) | a receipt for the document, and |
| 35 |
(b) | if the document is reasonably required for any purpose, a copy of the |
| |
| |
| and an officer of Revenue and Customs must comply with such a request |
| |
| |
(3) | The removal of a document under this paragraph is not to be regarded as |
| 40 |
breaking any lien claimed on the document. |
| |
|
| |
|
| |
|
(4) | Where a document removed under this paragraph is lost or damaged, the |
| |
Commissioners are liable to compensate the owner of the document for any |
| |
expenses reasonably incurred in replacing or repairing the document. |
| |
(5) | In this paragraph, references to a document include a copy of a document. |
| |
Power to mark assets and to record information |
| 5 |
15 | The powers under Part 2 of this Schedule include— |
| |
(a) | power to mark business assets, and anything containing business |
| |
assets, for the purpose of indicating that they have been inspected, |
| |
| |
(b) | power to obtain and record information (whether electronically or |
| 10 |
otherwise) relating to the premises, assets and documents that have |
| |
| |
| |
| |
Documents not in person’s possession or power |
| 15 |
16 | An information notice only requires a person to produce a document it if is |
| |
in the person’s possession or power. |
| |
| |
17 (1) | An information notice does not require a person to provide or produce— |
| |
(a) | information that relates to the conduct of a pending appeal relating |
| 20 |
to tax or any part of a document containing such information, or |
| |
(b) | journalistic material (as defined in section 13 of the Police and |
| |
Criminal Evidence Act 1984 (c. 60)) or information contained in such |
| |
| |
(2) | An information notice does not require a person to provide or produce |
| 25 |
personal records (as defined in section 12 of the Police and Criminal |
| |
Evidence Act 1984) or information contained in such records, subject to sub- |
| |
| |
(3) | An information notice may require a person— |
| |
(a) | to produce documents, or copies of documents, that are personal |
| 30 |
records, omitting any information whose inclusion (whether alone or |
| |
with other information) makes the original documents personal |
| |
records (“personal information”), and |
| |
(b) | to provide any information contained in such records that is not |
| |
| 35 |
| |
18 | An information notice may not require a person to produce a document if |
| |
the whole of the document originates more than 6 years before the date of |
| |
the notice, unless the notice is given by, or with the agreement of, an |
| |
| 40 |
|
| |
|
| |
|
| |
19 (1) | Where a person has made a tax return in respect of a chargeable period |
| |
under section 8, 8A or 12AA of TMA 1970 (returns for purpose of income tax |
| |
and capital gains tax), a taxpayer notice may not be given for the purpose of |
| |
checking that person’s income tax position or capital gains tax position in |
| 5 |
relation to the chargeable period. |
| |
(2) | Where a person has made a tax return in respect of a chargeable period |
| |
under paragraph 3 of Schedule 18 to FA 1998 (company tax returns), a |
| |
taxpayer notice may not be given for the purpose of checking that person’s |
| |
| 10 |
(3) | Sub-paragraphs (1) and (2) do not apply where, or to the extent that, any of |
| |
conditions A to D are met. |
| |
(4) | Condition A is that a notice of enquiry has been given in respect of— |
| |
| |
(b) | a claim or election (or an amendment of a claim or election) made by |
| 15 |
the person in relation to the chargeable period in respect of the tax (or |
| |
one of the taxes) to which the return relates (“relevant tax”), |
| |
| and the enquiry has not been completed. |
| |
(5) | In sub-paragraph (4), “notice of enquiry” means a notice under— |
| |
(a) | section 9A or 12AC of, or paragraph 5 of Schedule 1A to, TMA 1970, |
| 20 |
| |
(b) | paragraph 24 of Schedule 18 to FA 1998. |
| |
(6) | Condition B is that an officer of Revenue and Customs has reason to suspect |
| |
| |
(a) | an amount that ought to have been assessed to relevant tax for the |
| 25 |
chargeable period may not have been assessed, |
| |
(b) | an assessment to relevant tax for the chargeable period may be or |
| |
have become insufficient, or |
| |
(c) | relief from relevant tax given for the chargeable period may be or |
| |
| 30 |
(7) | Condition C is that the notice is given for the purpose of obtaining any |
| |
information or document that is also required for the purpose of checking |
| |
that person’s VAT position. |
| |
(8) | Condition D is that the notice is given for the purpose of obtaining any |
| |
information or document that is required (or also required) for the purpose |
| 35 |
of checking the person’s position as regards any deductions or repayments |
| |
referred to in paragraph 62(2) (PAYE etc). |
| |
| |
20 | An information notice given for the purpose of checking the tax position of |
| |
a person who has died may not be given more than 6 years after the person’s |
| 40 |
| |
Privileged communications between professional legal advisers and clients |
| |
21 (1) | An information notice does not require a person— |
| |
(a) | to provide privileged information, or |
| |
|
| |
|