House of Commons portcullis
House of Commons
Session 2007 - 08
Internet Publications
Other Bills before Parliament

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

 
 

Finance Bill
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.

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2008
Revised 27 March 2008