|
| |
|
(a) | in paragraph (a), for “at any time after the fifth anniversary of the |
| |
31st January next following” substitute “more than 4 years after the |
| |
| |
(b) | in paragraph (b), for “6 years” substitute “4 years”. |
| |
| 5 |
31 | VATA 1994 is amended as follows. |
| |
32 | In section 33A(4) (refunds of VAT to museums and galleries), for “3 years” |
| |
| |
33 (1) | Section 77 (assessments: time limits and supplementary assessments) is |
| |
| 10 |
(2) | In subsection (1)(a) and (b), for “3 years” substitute “4 years”. |
| |
(3) | For subsection (4) substitute— |
| |
“(4) | In any case falling within subsection (4A), an assessment of a person |
| |
(“P”), or of an amount payable by P, may be made at any time not |
| |
more than 20 years after the end of the prescribed accounting period |
| 15 |
or the importation, acquisition or event giving rise to the penalty, as |
| |
appropriate (subject to subsection (5)). |
| |
| |
(a) | a case involving a loss of VAT brought about deliberately by |
| |
P (or by another person acting on P’s behalf), |
| 20 |
(b) | a case in which P has participated in a transaction knowing |
| |
that it was part of arrangements of any kind (whether or not |
| |
legally enforceable) intended to bring about a loss of VAT, |
| |
(c) | a case involving a loss of VAT attributable to a failure by P to |
| |
comply with a notification obligation, and |
| 25 |
(d) | a case involving a loss of VAT attributable to a scheme in |
| |
respect of which P has failed to comply with an obligation |
| |
under paragraph 6 of Schedule 11A. |
| |
(4B) | In subsection (4A) the references to a loss of tax brought about |
| |
deliberately by P or another person include a loss that arises as a |
| 30 |
result of a deliberate inaccuracy in a document given to Her |
| |
Majesty’s Revenue and Customs by that person. |
| |
(4C) | In subsection (4A)(c) “notification obligation” means an obligation |
| |
| |
(a) | paragraph 5, 6, 7 or 14(2) or (3) of Schedule 1, |
| 35 |
(b) | paragraph 3 of Schedule 2, |
| |
(c) | paragraph 3 or 8(2) of Schedule 3, |
| |
(d) | paragraph 3, 4 or 7(2) or (3) of Schedule 3A, or |
| |
(e) | regulations under paragraph 2(4) of Schedule 11.” |
| |
| 40 |
(a) | in paragraph (a), for “3 years” substitute “4 years”, and |
| |
(b) | omit paragraph (b) and the “and” before it. |
| |
34 | In section 78(11) (interest in certain cases of official error), for “three years” |
| |
| |
|
| |
|
| |
|
35 | In section 80(4) (credit for, or repayment of, overstated or overpaid VAT), for |
| |
“3 years” substitute “4 years”. |
| |
| |
36 | Schedule 18 to FA 1998 (company tax returns) is amended as follows. |
| |
37 | In paragraph 36(5) (determination of tax payable if no return delivered), for |
| 5 |
“five years” substitute “3 years”. |
| |
38 | In paragraph 37(4) (determination of tax payable if notice complied with in |
| |
part), for “five years” substitute “3 years”. |
| |
39 | In paragraph 40(3) (time limit for self-assessment superseding |
| |
determination), for “five years” substitute “3 years”. |
| 10 |
40 (1) | Paragraph 43 (fraudulent or negligent conduct) is amended as follows. |
| |
(2) | For “is attributable to fraudulent or negligent conduct on the part of” |
| |
substitute “was brought about carelessly or deliberately by”. |
| |
(3) | Accordingly, for the heading before the paragraph substitute “Loss of tax |
| |
brought about carelessly or deliberately”. |
| 15 |
41 (1) | Paragraph 46 (general time limits for assessments) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “six years” substitute “4 years”. |
| |
(3) | For sub-paragraph (2) substitute— |
| |
“(2) | An assessment in a case involving a loss of tax brought about |
| |
carelessly by the company (or a related person) may be made at |
| 20 |
any time not more than 6 years after the end of the accounting |
| |
period to which it relates (subject to sub-paragraph (2A) and to |
| |
any other provision of the Taxes Acts allowing a longer period). |
| |
(2A) | An assessment in a case involving a loss of tax— |
| |
(a) | brought about deliberately by the company (or a related |
| 25 |
| |
(b) | attributable to a failure by the company to comply with an |
| |
obligation under paragraph 2, or |
| |
(c) | attributable to arrangements in respect of which the |
| |
company has failed to comply with an obligation under |
| 30 |
section 309, 310 or 313 of the Finance Act 2004 (obligation |
| |
of parties to tax avoidance schemes to provide information |
| |
to Her Majesty’s Revenue and Customs), |
| |
| may be made at any time not more than 20 years after the end of |
| |
the accounting period to which it relates (subject to any provision |
| 35 |
of the Taxes Acts allowing a longer period). |
| |
(2B) | In this paragraph, “related person”, in relation to a company, |
| |
| |
(a) | a person acting on behalf of the company, or |
| |
(b) | a person who was a partner of the company at the relevant |
| 40 |
| |
42 | In paragraph 51(1)(c) (relief in case of mistake in return), for “six years” |
| |
| |
|
| |
|
| |
|
43 (1) | Paragraph 53 (time limit for recovery of excessive payments etc) is amended |
| |
| |
(2) | In sub-paragraph (1), for “six year” substitute “4 year”. |
| |
(3) | In sub-paragraph (2), for “paragraph 46(2) (time limit for assessment in case |
| |
of fraud or negligence)” substitute “paragraph 46(2) and (2A) (time limit for |
| 5 |
assessment in case of loss of tax brought about carelessly or deliberately)”. |
| |
44 | In paragraph 55 (general time limit for making claims), for “six years” |
| |
| |
45 | In paragraph 61(2) (consequential claims etc arising out of certain Revenue |
| |
amendments or assessments), for “fraudulent or negligent conduct on the |
| 10 |
part of” substitute “a loss of tax brought about carelessly or deliberately by”. |
| |
46 (1) | Paragraph 65 (consequential claims) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “fraudulent or negligent conduct on the part of” |
| |
substitute “a loss of tax brought about carelessly or deliberately by”. |
| |
(3) | Accordingly, in the heading before the paragraph, for “fraud or negligence” |
| 15 |
substitute “loss of tax brought about carelessly or deliberately”. |
| |
| |
47 | In paragraph 27 of Schedule 16 (withdrawal or reduction of community |
| |
investment tax relief), insert at the end— |
| |
“(5) | An assessment under this paragraph may be made at any time not |
| 20 |
more than 6 years after the end of the accounting period for which |
| |
| |
(6) | Sub-paragraph (5) is without prejudice to paragraph 46(2A) of |
| |
Schedule 18 to the Finance Act 1998 (loss of tax brought about |
| |
| 25 |
| |
48 | In section 711(2) (notice requiring officer of Revenue and Customs to give |
| |
notice requiring tax return), for “5 years” substitute “3 years”. |
| |
| |
49 | ITTOIA 2005 is amended as follows. |
| 30 |
50 | In section 301(3) (claims for repayment of tax payable in connection with sale |
| |
with right to reconveyance), for “6 years” substitute “4 years”. |
| |
51 | In section 302(3) (claims for repayment of tax payable in connection with sale |
| |
and leaseback transactions), for “6 years” substitute “4 years”. |
| |
| 35 |
52 | ITA 2007 is amended as follows. |
| |
53 | In section 40(1)(a) (election for transfer of blind person’s allowance), for “on |
| |
or before the fifth anniversary of the normal self-assessment filing date for” |
| |
substitute “not more than 4 years after the end of”. |
| |
|
| |
|
| |
|
54 | In section 46(6)(b) (marriages and civil partnerships on or after 5 December |
| |
2005: election specifying person entitled to relief), for “on or before the fifth |
| |
anniversary of the normal self-assessment filing date for” substitute “not |
| |
more than 4 years after the end of”. |
| |
55 | In section 53(4)(a) (notice in respect of transfer of unused relief), for “on or |
| 5 |
before the fifth anniversary of the normal self-assessment filing date for” |
| |
substitute “not more than 4 years after the end of”. |
| |
56 | In section 155 (claim for loss relief against miscellaneous income), in each of |
| |
subsections (1) and (2), for “on or before the fifth anniversary of the normal |
| |
self-assessment filing date for” substitute “not more than 4 years after the |
| 10 |
| |
57 (1) | Section 237 (EIS relief: time limits for assessments) is amended as follows. |
| |
| |
| |
(b) | for “more than” substitute “at any time not more than”. |
| 15 |
| |
(a) | for “36” substitute “36(1A)”, and |
| |
(b) | for “(fraudulent or negligent conduct)” substitute “(loss of tax |
| |
brought about deliberately etc)”. |
| |
58 | In section 372 (withdrawal or reduction of community investment tax relief), |
| 20 |
| |
“(4) | An assessment under this paragraph may be made at any time not |
| |
more than 6 years after the end of the tax year for which the relief was |
| |
| |
(5) | Subsection (4) is without prejudice to section 36(1A) of TMA 1970 |
| 25 |
(loss of tax brought about deliberately etc).” |
| |
59 | In section 668(7) (claim for relief for unremittable transfer proceeds), for “on |
| |
or before the fifth anniversary of the normal self-assessment filing date for” |
| |
substitute “not more than 4 years after the end of”. |
| |
60 | In section 669(4) (claim for relief for unremittable transfer proceeds: section |
| 30 |
630 profits), for “on or before the fifth anniversary of the normal self- |
| |
assessment filing date for” substitute “not more than 4 years after the end |
| |
| |
| |
61 | In section 178(3) of FA 1993 (stop-loss and quota share insurance)— |
| 35 |
(a) | in paragraph (a), for “six years” substitute “4 years”, and |
| |
(b) | in paragraph (b), for “fraudulent or negligent conduct” substitute |
| |
“loss of tax brought about carelessly or deliberately”. |
| |
62 | In section 225(3)(b) of FA 1994 (stop-loss and quota share insurance), for |
| |
“fraudulent or negligent conduct” substitute “loss of tax brought about |
| 40 |
carelessly or deliberately”. |
| |
63 | In consequence of the preceding provisions of this Schedule, omit— |
| |
(a) | section 149(4)(a)(i) and (ii) of FA 1989, |
| |
(b) | paragraphs 4 and 6 of Schedule 21 to FA 1996, |
| |
|
| |
|
| |
|
(c) | section 47(10) of FA 1997, |
| |
(d) | paragraph 18 of Schedule 19 to FA 1998, and |
| |
(e) | section 91(6)(b) of FA 2007. |
| |
| |
64 | The amendments of sections 33, 34 and 36 of TMA 1970 made by this |
| 5 |
Schedule do not have effect for the purposes of those sections as applied by |
| |
paragraph 1 of Schedule 1 to OTA 1975 (management and collection of |
| |
| |
| |
| |
Penalties: amendments of Schedule 24 to FA 2007 |
| 10 |
1 | Schedule 24 to FA 2007 (penalties for errors) is amended as follows. |
| |
2 (1) | Paragraph 1 (error in taxpayer’s document) is amended as follows. |
| |
(2) | In sub-paragraph (2)— |
| |
(a) | for “P’s” substitute “a”, and |
| |
| 15 |
(3) | In sub-paragraph (3), for careless or deliberate (within the meaning of |
| |
paragraph 3)” substitute “careless (within the meaning of paragraph 3) or |
| |
| |
(4) | In the Table, after the entry relating to income tax and capital gains tax: |
| |
accounts in connection with a partnership return insert— |
| 20 |
| | Return under section 254 of FA |
| | | | | | | |
|
(5) | In the Table, after the entries relating to VAT insert— |
| |
| | Return under regulations under |
| | | | | | | 25 | | | Return, statement or declaration in |
| | | | | | | | | | Account under section 216 or 217 of |
| | | | | | | | | | Information or document under |
| | 30 | | | regulations under section 256 of |
| | | | | | | | | | Statement or declaration in |
| | | | | connection with a deduction, |
| | | | | | | 35 | | | Return under section 76 of FA 2003. |
| | | | | Return under regulations under |
| | | | | | | |
|
|
| |
|
| |
|
| | Return under regulations under |
| | | | | section 26K of BGDA 1981.” |
| | |
|
|
(6) | In the Table, in the last entry, in column 1, for “Income tax, capital gains tax, |
| |
corporation tax or VAT” substitute “Any of the taxes mentioned above”. |
| |
| 5 |
“(5) | In relation to a return under paragraph 2 of Schedule 2 to the Oil |
| |
Taxation Act 1975, references in this Schedule to P include any |
| |
person who, after the giving of the return for a taxable field |
| |
(within the meaning of that Act), becomes the responsible person |
| |
for the field (within the meaning of that Act).” |
| 10 |
3 | After that paragraph insert— |
| |
“Error in taxpayer’s document attributable to another person |
| |
1A (1) | A penalty is payable by a person (T) where— |
| |
(a) | another person (P) gives HMRC a document of a kind |
| |
listed in the Table in paragraph 1, |
| 15 |
(b) | the document contains a relevant inaccuracy, and |
| |
(c) | the inaccuracy was attributable to T supplying false |
| |
information to P (whether directly or indirectly), or to T |
| |
deliberately withholding information from P, with the |
| |
intention of the document containing the inaccuracy. |
| 20 |
(2) | A “relevant inaccuracy” is an inaccuracy which amounts to, or |
| |
| |
(a) | an understatement of a liability to tax, |
| |
(b) | a false or inflated statement of a loss, or |
| |
(c) | a false or inflated claim to repayment of tax. |
| 25 |
(3) | A penalty is payable under this paragraph in respect of an |
| |
inaccuracy whether or not P is liable to a penalty under paragraph |
| |
1 in respect of the same inaccuracy.” |
| |
4 (1) | Paragraph 2 (under-assessment by HMRC) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “tax” substitute “a relevant tax”. |
| 30 |
(3) | For sub-paragraph (3) substitute— |
| |
“(3) | In sub-paragraph (1) “relevant tax” means any tax mentioned in |
| |
the Table in paragraph 1.” |
| |
5 (1) | Paragraph 3 (degrees of culpability) is amended as follows |
| |
(2) | In sub-paragraph (1)— |
| 35 |
(a) | for “Inaccuracy in” substitute “For the purposes of a penalty under |
| |
paragraph 1, inaccuracy in”, and |
| |
(b) | after “is deliberate” (in both places) insert “on P’s part”. |
| |
(3) | In sub-paragraph (2), after “deliberate” insert “on P’s part”. |
| |
|
| |
|