Finance Bill

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Session 2007 - 08
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Finance Bill

Finance Bill (Volume II)
Schedule 36 — Information and inspection powers
Part 9 — Miscellaneous provisions and interpretation
399

(b)
is not also required to be kept or preserved under or by virtue of
VATA 1994 or any other enactment relating to value added tax,

it only forms part of a person’s statutory records to the extent that the
chargeable period or periods to which it relates has or have ended.
      (3)
Information and documents cease to form part of a person’s statutory
records when the period for which they are required to be preserved by the
enactments mentioned in sub-paragraph (1) has expired.
Tax
63    (1)
In this Schedule, except where the context otherwise requires, “tax” means
all or any of the following—
(a)
income tax,
(b)
capital gains tax,
(c)
corporation tax,
(d)
VAT, and
(e)
relevant foreign tax,

and references to “a tax” are to be interpreted accordingly.
      (2)
In this Schedule, “corporation tax” includes any amount assessable or
chargeable as if it were corporation tax.
      (3)
In this Schedule, “VAT” means—
(a)
value added tax charged in accordance with VATA 1994, and
(b)
value added tax charged in accordance with the law of another
member State,

and includes any amount that is recoverable under paragraph 5(2) of
Schedule 11 to VATA 1994 (amounts shown on invoices as VAT).
      (4)
In this Schedule, “relevant foreign tax” means—
(a)
a tax of a member State, other than the United Kingdom, which is
covered by the provisions for the exchange of information under the
Directive of the Council of the European Communities dated 19
December 1977 No. 77/799/EEC (as amended from time to time),
and
(b)
any tax or duty which is imposed under the law of a territory in
relation to which arrangements having effect by virtue of section 173
of FA 2006 (international tax enforcement arrangements) have been
made and which is covered by the arrangements.
Tax position
64    (1)
In this Schedule, except as otherwise provided, “tax position”, in relation to
a person, means the person’s position as regards any tax, including the
person’s position as regards—
(a)
past, present and future liability to pay any tax,
(b)
penalties and other amounts that have been paid, or are or may be
payable, by or to the person in connection with any tax, and
(c)
claims, elections, applications and notices that have been or may be
made or given in connection with any tax,

and references to a person’s position as regards a particular tax (however
expressed) are to be interpreted accordingly.

Finance Bill (Volume II)
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
400

      (2)
References in this Schedule to a person’s tax position include, where
appropriate, a reference to the person’s position as regards any deductions
or repayments of tax, or of sums representing tax, that the person is required
to make—
(a)
under PAYE regulations,
(b)
under Chapter 3 of Part 3 of FA 2003 or regulations made under that
Chapter (construction industry scheme), or
(c)
by or under any other provision of the Taxes Acts.
      (3)
References in this Schedule to the tax position of a person include the tax
position of—
(a)
a company that has ceased to exist, and
(b)
an individual who has died.
      (4)
References in this Schedule to a person’s tax position are to the person’s tax
position at any time or in relation to any period, unless otherwise stated.
Part 10
Consequential provisions
TMA 1970
65
TMA 1970 is amended as follows.
66
Omit section 19A (power to call for documents for purposes of enquiries).
67
Omit section 20 (power to call for documents of taxpayer and others).
68    (1)
Section 20B (restrictions on powers to call for documents under ss20 and
20A) is amended as follows.
      (2)
In the heading, for “ss 20 and” substitute “section”.
      (3)
In subsection (1)—
(a)
omit “under section 20(1), (3) or (8A), or”,
(b)
omit “(or, in the case of section 20(3), to deliver or make available)”,
(c)
omit “, or to furnish the particulars in question”, and
(d)
omit “section 20(7) or (8A) or, as the case may be,”.
      (4)
Omit subsections (1A) and (1B).
      (5)
In subsection (2), omit from the beginning to “taxpayer; and”.
      (6)
In subsection (3)—
(a)
omit “under section 20(1) or (3) or”, and
(b)
omit “section 20(3) and (4) and”.
      (7)
In subsection (4)—
(a)
omit “section 20(1) or”, and
(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).

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Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
401

69    (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”.
70    (1)
Section 20D (interpretation) is amended as follows.
      (2)
In subsection (2), for “sections 20 and” substitute “section”.
      (3)
Omit subsection (3).
71
In section 29(6)(c) (assessment where loss of tax discovered), omit “, whether
in pursuance of a notice under section 19A of this Act or otherwise”.
72
Omit section 97AA (failure to produce documents under section 19A).
73
In section 98 (penalties), in the Table—
(a)
in the first column, omit the entry for section 767C of ICTA, and
(b)
in the second column, omit the entry for section 28(2) of F(No.2)A
1992.
74
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.”
75    (1)
Section 107A (relevant trustees) is amended as follows.
      (2)
In subsection (2)(a), for “, 95 or 97AA” substitute ‘or 95’.
      (3)
In subsection (3)(a), omit “or 97AA(1)(b)”.
76
In section 118 (interpretation), in the definition of “tax”, omit “20,”.
77
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)
78
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
79
ICTA is amended as follows.
80
In section 767B (change of company ownership: supplementary), in
subsection (4), for “767AA and 767C” substitute “and 767AA”.
81
Omit section 767C (change in company ownership: information).
82
In section 769 (rules for ascertaining change in ownership of company)—
(a)
in subsections (1) and (5), omit “, 767C”, and
(b)
in subsections (2A) and (9), for “767AA or 767C” substitute “or
767AA”.

Finance Bill (Volume II)
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
402

FA 1990
83
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)
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
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)
84
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)
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
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,
(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
information relating to the conduct of a pending appeal
relating to relevant contributions, and
(d)
paragraphs 21, 35(4)(b), 36 and 37(2) of that Schedule
(restrictions on giving taxpayer notice where taxpayer has
made tax return) were omitted.”
Social Security Administration (Northern Ireland) Act 1992 (c. 8)
85
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
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—

Finance Bill (Volume II)
Schedule 36 — Information and inspection powers
Part 10 — Consequential provisions
403

(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
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
(d)
paragraphs 21, 35(4)(b), 36 and 37(2) of that Schedule
(restrictions on giving taxpayer notice where taxpayer has
made tax return) were omitted.”
F(No.2)A 1992
86
Omit section 28(1) to (3) (powers of inspection).
VATA 1994
87    (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-
paragraphs (1) to (2A).
FA 1998
88
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
produce documents etc).
FA 1999
89
In section 13(5) (gold), omit paragraph (c).
Tax Credits Act 2002 (c. 21)
90
In section 25 of the Tax Credits Act 2002 (payments of working tax credit by
employers), omit subsections (3) and (4).
FA 2006
91
Omit section 174 of FA 2006 (international tax enforcement arrangements:
information powers).
Other repeals
92
In consequence of the preceding provisions of this Part of this Schedule, omit
the following—
(a)
section 126 of FA 1988,

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Schedule 37 — Record-keeping
404

(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,
(f)
paragraph 17 of Schedule 3, and paragraph 2 of Schedule 22, to FA
1996,
(g)
section 115 of, and paragraphs 36 and 42(6) and (7) of Schedule 19 to,
FA 1998,
(h)
section 15(3) of FA 1999,
(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 113

Record-keeping
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)—
(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
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—
(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.”
      (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
and by any means,

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Schedule 37 — Record-keeping
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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
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
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.
      (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,
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
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
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.”
      (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
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.”