Finance Bill

House of Commons

Session 2007 - 08
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Finance Bill

Finance Bill
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
372

(b)
omit “, and as an alternative to delivering documents to comply with
a notice under section 20(3) or (8A)”.
      (8)
Omit subsections (5), (6) and (7).
      (9)
In subsection (8), omit “section 20(3) or (8A) or”.
     (10)
Omit subsections (9) to (14).
5
67    (1)
Section 20BB (falsification etc. of documents) is amended as follows.
      (2)
In subsection (1)(a), omit “20 or”.
      (3)
In subsection (2)(b), omit “or, in a case within section 20(3) or (8A) above,
inspected”.
68    (1)
Section 20D (interpretation) is amended as follows.
10
      (2)
In subsection (2), for “sections 20 and” substitute “section”.
      (3)
Omit subsection (3).
69
Omit section 97AA (failure to produce documents under section 19A).
70
In section 98 (penalties), in the Table—
(a)
in the first column, omit the entry for section 767C of ICTA, and
15
(b)
in the second column, omit the entry for section 28(2) of F(No.2)A
1992.
71
In section 100(2) (exclusions from provisions relating to determination of
penalties under the Taxes Acts), insert at the end “or
(g)
Schedule 36 to the Finance Act 2008.”
20
72
In section 118 (interpretation), in the definition of “tax”, omit “20,”.
73
In Schedule 1A (claims etc. not included in returns), omit paragraphs 6 and
6A (power to call for documents for purposes of enquiries and power to
appeal against notice to produce documents).
National Savings Bank Act 1971 (c. 29)
25
74
In section 12(3) (secrecy), for the words from “and of section 20(3)” to the end
substitute “and of Schedule 36 to the Finance Act 2008 (powers of officers of
Revenue and Customs to obtain information and documents and inspect
business premises)”.
ICTA
30
75
ICTA is amended as follows.
76
In section 767B (change of company ownership: supplementary), in
subsection (4), for “767AA and 767C” substitute “and 767AA”.
77
Omit section 767C (change in company ownership: information).
78
In section 769 (rules for ascertaining change in ownership of company)—
35
(a)
in subsections (1) and (5), omit “, 767C”, and
(b)
in subsections (2A) and (9), for “767AA or 767C” substitute “or
767AA”.

Finance Bill
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
373

FA 1990
79
In section 125 of FA 1990 (information for tax authorities in other member
States)—
(a)
omit subsections (1) and (2),
(b)
in subsection (3), for “the Directive mentioned in subsection (1)
5
above” substitute “the Directive of the Council of the European
Communities dated 19 December 1977 No. 77/799/EEC (the “1977
Directive”)”,
(c)
in subsection (4), for “such as is mentioned in subsection (1) above”
substitute “which is covered by the provisions for the exchange of
10
information under the 1977 Directive”, and
(d)
in subsection (6), omit the words from the beginning to “passed,”.
Social Security Administration Act 1992 (c. 5)
80
In section 110ZA of the Social Security Administration Act 1992 (Class 1, 1A,
1B or 2 contributions: powers to call for documents etc), for subsections (1)
15
and (2) substitute—
“(1)
Schedule 36 to the Finance Act 2008 (information and inspection
powers) applies for the purpose of checking a person’s position as
regards relevant contributions as it applies for the purpose of
checking a person’s tax position, subject to the modifications in
20
subsection (2).
(2)
That Schedule applies as if—
(a)
references to any provision of the Taxes Acts were to any
provision of this Act or the Contributions and Benefits Act
relating to relevant contributions,
25
(b)
references to prejudice to the assessment or collection of tax
were to prejudice to the assessment of liability for, and
payment of, relevant contributions,
(c)
the reference to information relating to the conduct of a
pending appeal relating to tax were a reference to
30
information relating to the conduct of a pending appeal
relating to relevant contributions, and
(d)
paragraphs 19, 33(4)(b), 34 and 35(2) of that Schedule
(restrictions on giving taxpayer notice where taxpayer has
made tax return) were omitted.”
35
Social Security Administration (Northern Ireland) Act 1992 (c. 8)
81
In section 104ZA of the Social Security Administration (Northern Ireland)
Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents
etc), for subsections (1) and (2) substitute—
“(1)
Schedule 36 to the Finance Act 2008 (information and inspection
40
powers) applies for the purpose of checking a person’s position as
regards relevant contributions as it applies for the purpose of
checking a person’s tax position, subject to the modifications in
subsection (2).
(2)
That Schedule applies as if—
45

Finance Bill
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
374

(a)
references to any provision of the Taxes Acts were to any
provision of this Act or the Contributions and Benefits Act
relating to relevant contributions,
(b)
references to prejudice to the assessment or collection of tax
were to prejudice to the assessment of liability for, and
5
payment of, relevant contributions,
(c)
the reference to information relating to the conduct of a
pending appeal relating to tax were a reference to
information relating to the conduct of a pending appeal
relating to relevant contributions, and
10
(d)
paragraphs 19, 33(4)(b), 34 and 35(2) of that Schedule
(restrictions on giving taxpayer notice where taxpayer has
made tax return) were omitted.”
F(No.2)A 1992
82
Omit section 28(1) to (3) (powers of inspection).
15
VATA 1994
83    (1)
Schedule 11 to VATA 1994 is amended as follows.
      (2)
In paragraph 7 (furnishing information and producing documents), omit
sub-paragraphs (2) to (9).
      (3)
In paragraph 10 (entry and search of premises and persons), omit sub-
20
paragraphs (1) to (2A).
FA 1998
84
In Schedule 18 to FA 1998 (company tax returns), omit paragraphs 27, 28 and
29 (notice to produce documents etc. for purposes of enquiry into company
tax return, power to appeal against such notices and penalty for failure to
25
produce documents etc).
FA 1999
85
In section 13(5) (gold), omit paragraph (c).
Tax Credits Act 2002 (c. 21)
86
In section 25 of the Tax Credits Act 2002 (payments of working tax credit by
30
employers), omit subsections (3) and (4).
FA 2006
87
Omit section 174 of FA 2006 (international tax enforcement arrangements:
information powers).
Other repeals
35
88
In consequence of the preceding provisions of this Part of this Schedule, omit
the following—
(a)
section 126 of FA 1988,

Finance Bill
Schedule 37 — Record-keeping
375

(b)
sections 142(2), (3), (4), (6)(a), (7), (8) and (9) and 144(3), (5) and (7) of
FA 1989,
(c)
sections 187 and 255 of, and paragraph 29 of Schedule 19 to, FA 1994,
(d)
paragraph 6 of Schedule 1 to the Civil Evidence Act 1995 (c. 38),
(e)
paragraph 3 of Schedule 19 to FA 1996,
5
(f)
paragraph 17 of Schedule 3, and paragraph 2 of Schedule 22, to FA
1996,
(g)
section 118 of, and paragraphs 36 and 42(6) and (7) of Schedule 19 to,
FA 1998,
(h)
section 15(3) of FA 1999,
10
(i)
paragraphs 21 and 38(4) of Schedule 29 to FA 2001,
(j)
section 20 of FA 2006, and
(k)
paragraph 350 of Schedule 1 to ITA 2007.
Schedule 37
Section 110

Record-keeping
15
TMA 1970
1
TMA 1970 is amended as follows.
2     (1)
Section 12B (records to be kept for purposes of income tax and capital gains
tax returns) is amended as follows.
      (2)
In subsection (2)—
20
(a)
in paragraph (b), for “in any other case” substitute “otherwise”, and
(b)
after that paragraph insert—

“or (in either case) such earlier day as may be specified in
writing by the Commissioners for Her Majesty’s Revenue
and Customs (and different days may be specified for
25
different cases).”
      (3)
In subsection (3), omit paragraph (b) and the “and” before it.
      (4)
After that subsection insert—
“(3A)
The Commissioners for Her Majesty’s Revenue and Customs may by
regulations—
30
(a)
provide that the records required to be kept and preserved
under this section include, or do not include, records
specified in the regulations, and
(b)
provide that those records include supporting documents so
specified.”
35
      (5)
For subsection (4) substitute—
“(4)
The duty under subsection (1) or (2A) to preserve records may be
discharged—
(a)
by preserving them in any form and by any means, or
(b)
by preserving the information contained in them in any form
40
and by any means,

Finance Bill
Schedule 37 — Record-keeping
376


subject to subsection (4A) and any conditions or further exceptions
specified in writing by the Commissioners for Her Majesty’s
Revenue and Customs.”
      (6)
In subsection (4A), for “The records that fall within this subsection are”
substitute “Subsection (4)(b) does not apply in the case of the following
5
kinds of records”.
      (7)
After subsection (5B) insert—
“(5C)
Regulations under this section may—
(a)
make different provision for different cases, and
(b)
make provision by reference to things specified in a notice
10
published by the Commissioners for Her Majesty’s Revenue
and Customs in accordance with the regulations (and not
withdrawn by a subsequent notice).”
3     (1)
Paragraph 2A of Schedule 1A (records to be kept for the purposes of claims)
is amended as follows.
15
      (2)
After sub-paragraph (2) insert—
   “(2A)
The Commissioners for Her Majesty’s Revenue and Customs may
by regulations—
(a)
provide that the records required to be kept and preserved
under sub-paragraph (1) include, or do not include,
20
records specified in the regulations, and
(b)
provide that those records include supporting documents
so specified.”
      (3)
For sub-paragraph (3) substitute—
    “(3)
The duty under sub-paragraph (1) to preserve records may be
25
discharged—
(a)
by preserving them in any form and by any means, or
(b)
by preserving the information contained in them in any
form and by any means,

subject to sub-paragraph (3A) and any conditions or further
30
exceptions specified in writing by the Commissioners for Her
Majesty’s Revenue and Customs.
     (3A)
Sub-paragraph (3)(b) does not apply in the case of records of the
kinds specified in section 12B(4A) or paragraph 22(3) of Schedule
18 to the Finance Act 1998.”
35
      (4)
Insert at the end—
    “(6)
Regulations under this paragraph may—
(a)
make different provision for different cases, and
(b)
make provision by reference to things specified in a notice
published by the Commissioners for Her Majesty’s
40
Revenue and Customs in accordance with the regulations
(and not withdrawn by a subsequent notice).
      (7)
In this paragraph “supporting documents” includes accounts,
books, deeds, contracts, vouchers and receipts.”

Finance Bill
Schedule 37 — Record-keeping
377

VATA 1994
4
Schedule 11 to VATA 1994 (administration, collection and enforcement) is
amended as follows.
5     (1)
Paragraph 6 (duty to keep records) is amended as follows.
      (2)
In sub-paragraph (3), for the second “require” substitute “specify in writing
5
(and different periods may be specified for different cases)”.
      (3)
For sub-paragraphs (4) to (6) substitute—
    “(4)
The duty under this paragraph to preserve records may be
discharged—
(a)
by preserving them in any form and by any means, or
10
(b)
by preserving the information contained in them in any
form and by any means,

subject to any conditions or exceptions specified in writing by the
Commissioners for Her Majesty’s Revenue and Customs.”
6
In paragraph 6A(7) (application of provisions of paragraph 6 where
15
directions under paragraph 6A require records to be kept)—
(a)
for “Sub-paragraphs (4) to (6) of paragraph 6 (preservation of
information by means approved by the Commissioners) apply”
substitute “Sub-paragraph (4) of paragraph 6 (preservation of
information) applies”, and
20
(b)
for “they apply” substitute “it applies”.
FA 1998
7
Schedule 18 to FA 1998 (company tax returns) is amended as follows.
8     (1)
Paragraph 21 (duty to keep and preserve records) is amended as follows.
      (2)
In sub-paragraph (2), for the words from “for six years” to the end substitute
25
“until the end of the relevant day.”
      (3)
After that sub-paragraph insert—
   “(2A)
In this paragraph “relevant day” means—
(a)
the sixth anniversary of the end of the period for which the
company may be required to deliver a company tax return,
30
or
(b)
such earlier day as may be specified in writing by the
Commissioners for Her Majesty’s Revenue and Customs
(and different days may be specified for different cases).”
      (4)
In sub-paragraph (3), for “that six year period” substitute “the relevant day”.
35
      (5)
In sub-paragraph (4), for “that six year period” substitute “the relevant day”.
      (6)
After sub-paragraph (5) insert—
   “(5A)
The Commissioners for Her Majesty’s Revenue and Customs may
by regulations—
(a)
provide that the records required to be kept and preserved
40
under this paragraph include, or do not include, records
specified in the regulations, and

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Schedule 37 — Record-keeping
378

(b)
provide that those records include supporting documents
so specified.
     (5B)
Regulations under this paragraph may—
(a)
make different provision for different cases, and
(b)
make provision by reference to things specified in a notice
5
published by the Commissioners for Her Majesty’s
Revenue and Customs in accordance with the regulations
(and not withdrawn by a subsequent notice).”
      (7)
In sub-paragraph (6), omit the first sentence.
9     (1)
Paragraph 22 (preservation of information instead of original records) is
10
amended as follows.
      (2)
For sub-paragraph (1) substitute—
    “(1)
The duty under paragraph 21 to preserve records may be
discharged—
(a)
by preserving them in any form and by any means, or
15
(b)
by preserving the information contained in them in any
form and by any means,

subject to sub-paragraph (3) and any conditions or exceptions
specified in writing by the Commissioners for Her Majesty’s
Revenue and Customs.”
20
      (3)
Omit sub-paragraph (2).
      (4)
In sub-paragraph (3), for “The records excluded from sub-paragraph (1) are”
substitute “Sub-paragraph (1)(b) does not apply in the case of the following
kinds of records”.
      (5)
Accordingly, in the heading before that paragraph, for “instead of original
25
records” substitute “etc”.
Consequential provisions
10
In section 13(6) of FA 1999 (VAT and gold)—
(a)
for “(6)” substitute “(4)”,
(b)
after “above” insert “, and to records kept in pursuance of such
30
regulations,”, and
(c)
insert at the end “and to records kept in pursuance of that
paragraph”.
11
In consequence of the amendments made by paragraph 2 omit—
(a)
section 105(4)(b) of FA 1995, and
35
(b)
section 124(2) and (6) of FA 1996.