Finance Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 7 — Administration
Chapter 1 — Information etc
68

Part 7
Administration
Chapter 1
Information etc
New information etc powers
5
108
Information and inspection powers
(1)
Schedule 36 contains provision about the powers of officers of Revenue and
Customs to obtain information and to inspect businesses.
(2)
That Schedule comes into force on such day as the Treasury may by order
made by statutory instrument appoint.
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(3)
An order under subsection (2) may contain transitional provision and savings.
109
Computer records etc
(1)
This section applies to any enactment that, in connection with an HMRC
matter—
(a)
requires a person to produce a document or cause a document to be
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produced,
(b)
requires a person to permit the Commissioners or an officer of Revenue
and Customs—
(i)
to inspect a document, or
(ii)
to make or take copies of or extracts from or remove a
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document, or
(c)
makes provision about penalties or offences in connection with the
production or inspection of documents, including in connection with
the falsification of or failure to produce or permit the inspection of
documents.
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(2)
A provision to which this section applies has effect as if—
(a)
any reference in the provision to a document were a reference to
anything in which information of any description is recorded, and
(b)
any reference in the provision to a copy of a document were a reference
to anything onto which information recorded in the document has been
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copied, by whatever means and whether directly or indirectly.
(3)
An authorised person may, at any reasonable time, obtain access to, and
inspect and check the operation of, any computer and any associated
apparatus or material which is or has been used in connection with a relevant
document.
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(4)
In subsection (3), “relevant document” means a document that a person has
been, or may be, required pursuant to a provision to which this section
applies—
(a)
to produce or cause to be produced, or
(b)
to permit the Commissioners or an officer of Revenue and Customs to
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inspect, to make or take copies of or extracts from or to remove.

Finance Bill
Part 7 — Administration
Chapter 1 — Information etc
69

(5)
An authorised person may require—
(a)
the person by whom or on whose behalf the computer is or has been so
used, or
(b)
any person having charge of, or otherwise concerned with the
operation of, the computer, apparatus or material,
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to provide the authorised person with such reasonable assistance as may be
required for the purposes of subsection (3).
(6)
Any person who—
(a)
obstructs the exercise of a power conferred by this section, or
(b)
fails to comply within a reasonable time with a requirement under
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subsection (5),

is liable to a penalty of £300.
(7)
Paragraphs 43 to 47 and 50 of Schedule 36 (assessment of and appeals against
penalties) apply in relation to a penalty under this section as they apply in
relation to a penalty under paragraph 37 of that Schedule.
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(8)
Omit the following—
(a)
section 10 of FA 1985 (production of computer records etc in connection
with assigned matters),
(b)
section 127 of FA 1988 (production of computer records etc in
connection with the Taxes Acts), and
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(c)
paragraphs 11(2) to (4) and 13(2) and (3) of Schedule 1 to the Civil
Evidence Act 1995 (c. 38).
(9)
In this section—
“authorised person” means a person who is, or is a member of a class of
persons who are, authorised by the Commissioners to exercise the
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powers under subsection (3),
“the Commissioners” means the Commissioners for Her Majesty’s
Revenue and Customs,
“enactment” includes subordinate legislation (within the meaning of the
Interpretation Act 1978 (c. 30)),
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“HMRC matter” means a matter in relation to which the Commissioners,
or officers of Revenue and Customs, have a power or duty, and
“produce”, in relation to a document, includes furnish, deliver and any
other equivalent expression.
Other measures
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110
Record-keeping
(1)
Schedule 37 contains provision about the obligations to keep records for the
purposes of income tax, capital gains tax, corporation tax and value added tax.
(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint.
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111
Disclosure of tax avoidance schemes
(1)
Schedule 38 contains amendments relating to the disclosure of tax avoidance
schemes.

Finance Bill
Part 7 — Administration
Chapter 2 — Time limits for claims and assessments etc
70

(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint; and different
days may be appointed for different purposes.
112
Power to open or unpack containers
(1)
CEMA 1979 is amended as follows.
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(2)
In section 1(1) (interpretation), in the definition of “container”, after “and any”
insert “baggage,”.
(3)
Section 159 (power to examine and take account of goods) is amended as
follows.
(4)
In subsection (1)—
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(a)
after “for that purpose” insert “open or unpack any container or”, and
(b)
insert at the end “and search it or anything in it.”
(5)
In subsection (4), insert at the end “; but if an officer opens or unpacks any
container, or searches it or anything in it, the Commissioners are to bear the
expense of doing so.”
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Chapter 2
Time limits for claims and assessments etc
General
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Time limits for assessments, claims etc
(1)
Schedule 39 contains provision about time limits for assessments, claims etc.
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(2)
The amendments and saving made by that Schedule come into force on such
day as the Treasury may by order made by statutory instrument appoint.
(3)
An order under subsection (2)—
(a)
may make different provision for different purposes, and
(b)
may include transitional provision and further savings.
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Income tax and corporation tax
114
Correction and amendment of tax returns
(1)
In section 9ZB(1) of TMA 1970 (correction of personal or trustee return by
HMRC)—
(a)
after “correct” insert “—
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(a)
”, and
(b)
insert at the end “, and
(b)
anything else in the return that the officer has reason to
believe is incorrect in the light of information available
to the officer.”
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(2)
In section 12ABB(1) of that Act (correction of partnership return by HMRC)—

Finance Bill
Part 7 — Administration
Chapter 2 — Time limits for claims and assessments etc
71

(a)
after “correct” insert “—
(a)
”, and
(b)
insert at the end “, and
(b)
anything else in the return that the officer has reason to
believe is incorrect in the light of information available
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to the officer.”
(3)
Schedule 18 to FA 1998 (company tax returns) is amended as follows.
(4)
In paragraph 16(1) (correction of company tax return by HMRC)—
(a)
after “correct” insert “—
(a)
”, and
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(b)
insert at the end “, and
(b)
anything else in the return that the officer has reason
to believe is incorrect in the light of information
available to the officer.”
(5)
In paragraph 31 (amendment of return by company during enquiry), in sub-
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paragraph (4), for paragraph (b) substitute—
“(b)
in any other case, the amendment takes effect as part of the
amendments made by the closure notice.”
(6)
In paragraph 34 (amendment of company tax return after enquiry), for sub-
paragraphs (1) and (2) substitute—
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    “(1)
This paragraph applies where a closure notice is given to a company
by an officer.
      (2)
The closure notice must—
(a)
state that, in the officer’s opinion, no amendment is required
of the return that was the subject of the enquiry, or
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(b)
make the amendments of that return that are required—
(i)
to give effect to the conclusions stated in the notice,
and
(ii)
in the case of a return for the wrong period, to make
it a return appropriate to the designated period.
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     (2A)
The officer may by further notice to the company make any
amendments of other company tax returns delivered by the
company that are required to give effect to the conclusions stated in
the closure notice.”
(7)
In sub-paragraph (3) of that paragraph, for “any such amendment of a
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company’s return” substitute “an amendment of a company’s return under
sub-paragraph (2) or (2A)”.
(8)
In sub-paragraph (4)(c) of that paragraph, for “notice of amendment”
substitute “closure notice”.
(9)
The amendments made by this section come into force on such day as the
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Treasury may by order appoint.