|
| |
|
(2) | Omit paragraphs 9 and 10 of Schedule 3 (election to have amounts |
| |
mentioned in section 2(9)(b) and (c) spread). |
| |
(3) | In consequence of the omission of paragraph 9 of Schedule 3, omit section |
| |
| |
(4) | Omit paragraph 3 of Schedule 4 (allowable expenditure incurred before 13 |
| 5 |
| |
(5) | The repeals made by this paragraph have effect in relation to chargeable |
| |
periods beginning after 30 June 2009. |
| |
| |
2 (1) | OTA 1983 is amended as follows. |
| 10 |
(2) | Omit section 9(3) and paragraph 3 of Schedule 3 (receipts from contracts |
| |
| |
(3) | In consequence of the omission of subsection (3) of section 9— |
| |
(a) | in subsection (2) of that section, for “subsections (3) and (4)” |
| |
substitute “subsection (4)”, and |
| 15 |
(b) | in subsection (4)(b) of that section, for “subsections (1) to (3)” |
| |
substitute “subsections (1) and (2)”. |
| |
(4) | Omit sections 13 and 14 and Schedule 5 (transitional provision for |
| |
expenditure incurred on or before 31 December 1983). |
| |
| 20 |
3 (1) | Schedule 20A to FA 1993 (as inserted by Part 1 of Schedule 33 to FA 2008) is |
| |
renumbered as Schedule 20B to that Act. |
| |
(2) | In the following provisions, for “Schedule 20A” substitute “Schedule 20B”— |
| |
(a) | section 6(1A) of OTA 1975, |
| |
(b) | paragraph 15(9A) of Schedule 17 to FA 1980, and |
| 25 |
(c) | section 185(1ZA)(b) of FA 1993. |
| |
| |
4 (1) | In section 502(3A) of ICTA (interpretation of Chapter 5 of Part 12), omit the |
| |
words from “but” to the end. |
| |
(2) | The repeal made by this paragraph has effect on and after 22 April 2009. |
| 30 |
| |
| |
Duties of senior accounting officers of large companies |
| |
Main duty of senior accounting officer |
| |
1 (1) | The senior accounting officer of a large company must take reasonable steps |
| |
to ensure that the company and each of its subsidiaries (if any) establishes |
| 35 |
and maintains appropriate tax accounting arrangements. |
| |
|
| |
|
| |
|
(2) | The senior accounting officer of a large company must, in particular, take |
| |
| |
(a) | to monitor the accounting arrangements of the company and its |
| |
subsidiaries (if any), and |
| |
(b) | to identify any respects in which those arrangements are not |
| 5 |
appropriate tax accounting arrangements. |
| |
| |
2 (1) | This paragraph applies if a large company, or any of its subsidiaries, does |
| |
not have appropriate tax accounting arrangements at any time in a financial |
| |
| 10 |
(2) | Before the report date, the senior accounting officer of the company must |
| |
provide the company’s auditor for the financial year with an explanation of |
| |
the respects in which the accounting arrangements of the company and its |
| |
subsidiaries (if any) are not appropriate tax accounting arrangements. |
| |
(3) | “The report date” means the date on which the auditor’s report on the |
| 15 |
company’s accounts for the financial year is finalised. |
| |
Certificate for Commissioners |
| |
3 (1) | The senior accounting officer of a large company must provide the |
| |
Commissioners with a Type A or Type B certificate for each financial year of |
| |
| 20 |
(2) | A Type A certificate is a certificate stating that the company and its |
| |
subsidiaries (if any) had appropriate tax accounting arrangements |
| |
throughout the financial year. |
| |
(3) | A Type B certificate is a certificate— |
| |
(a) | stating whether the company, and each of its subsidiaries (if any), |
| 25 |
had appropriate tax accounting arrangements throughout the |
| |
| |
(b) | giving an explanation of the respects in which the accounting |
| |
arrangements of the company and its subsidiaries (if any) were not |
| |
appropriate tax accounting arrangements, and |
| 30 |
(c) | stating whether an explanation has been provided to the company’s |
| |
auditors in accordance with paragraph 2. |
| |
(4) | The certificate must be provided— |
| |
(a) | by such means and in such form as is reasonably specified by an |
| |
officer of Revenue and Customs, and |
| 35 |
(b) | not later than the end of the period for filing the accounts for the |
| |
financial year (or such later time as an officer of Revenue and |
| |
Customs may have allowed). |
| |
Notifying Commissioners of name of senior accounting officer |
| |
4 (1) | For each financial year a large company must notify the Commissioners of |
| 40 |
the name of each person who was its senior accounting officer at any time |
| |
| |
(2) | The notification must be given— |
| |
|
| |
|
| |
|
(a) | by such means and in such form as is reasonably specified by an |
| |
officer of Revenue and Customs, and |
| |
(b) | not later than the end of the period for filing the accounts for the |
| |
financial year (or such later time as an officer of Revenue and |
| |
Customs may have allowed for providing the certificate for the |
| 5 |
financial year under paragraph 3). |
| |
Penalty for failure to comply with main duty |
| |
5 (1) | This paragraph applies if a senior accounting officer fails to comply with |
| |
paragraph 1 at any time in a financial year. |
| |
(2) | The senior accounting officer is liable to a penalty of £5,000. |
| 10 |
(3) | A person is not liable to more than one penalty under this paragraph in |
| |
respect of the same company and the same financial year. |
| |
Penalty for failure to provide explanation |
| |
6 (1) | This paragraph applies if a senior accounting officer fails to provide an |
| |
explanation to the company’s auditor in accordance with paragraph 2. |
| 15 |
(2) | The senior accounting officer is liable to a penalty of £5,000. |
| |
Penalties for failure to provide certificate etc |
| |
7 (1) | This paragraph applies if a senior accounting officer— |
| |
(a) | fails to provide a certificate in accordance with paragraph 3, or |
| |
(b) | provides a certificate in accordance with that paragraph that |
| 20 |
contains a careless or deliberate inaccuracy. |
| |
(2) | The senior accounting officer is liable to a penalty of £5,000. |
| |
(3) | For the purposes of this Schedule, an inaccuracy is careless if the inaccuracy |
| |
is due to a failure by the senior accounting officer to take reasonable care. |
| |
(4) | An inaccuracy in a certificate that was neither careless nor deliberate when |
| 25 |
the certificate was given is to be treated as careless if the senior accounting |
| |
| |
(a) | discovered the inaccuracy some time later, and |
| |
(b) | did not take reasonable steps to inform HMRC. |
| |
More than one senior accounting officer |
| 30 |
8 (1) | This paragraph applies if the identity of the senior accounting officer of a |
| |
| |
(2) | If (but for this sub-paragraph) more than one person would be liable to a |
| |
penalty under paragraph 5 in respect of a financial year of the company, |
| |
only the one who became the senior accounting officer latest in the year is |
| 35 |
liable to such a penalty. |
| |
(3) | If a person who is or has been the senior accounting officer of the company |
| |
complies, or purports to comply, with paragraph 2 in respect of a financial |
| |
year, no other person is liable to a penalty under paragraph 6 in respect of |
| |
that company and that financial year. |
| 40 |
|
| |
|
| |
|
(4) | If a person who is or has been the senior accounting officer of the company |
| |
complies, or purports to comply, with paragraph 3 in respect of a financial |
| |
year, no other person is liable to a penalty under paragraph 7 in respect of |
| |
that company and that financial year. |
| |
(5) | A person who is replaced as the senior accounting officer of the company |
| 5 |
before the last day for compliance with paragraph 2 or 3 in respect of a |
| |
financial year is not liable to a penalty under paragraph 6 or 7(1)(a) for |
| |
failing to comply with that paragraph in respect of that company and that |
| |
| |
Penalty for failure to notify Commissioners of name of senior accounting officer |
| 10 |
9 | A large company is liable to a penalty of £5,000 if it fails to notify the |
| |
Commissioners of the name of its senior accounting officer or officers in |
| |
accordance with paragraph 4. |
| |
| |
10 (1) | Liability to a penalty for a failure to comply with this Schedule does not arise |
| 15 |
if the senior accounting officer or large company satisfies HMRC or (on an |
| |
appeal notified to the tribunal) the tribunal that there is a reasonable excuse |
| |
| |
(2) | For the purposes of this paragraph— |
| |
(a) | an insufficiency of funds is not a reasonable excuse unless |
| 20 |
attributable to events outside the person’s control, |
| |
(b) | where the person relies on any other person to do anything, that is |
| |
not a reasonable excuse unless the first person took reasonable care |
| |
to avoid the failure, and |
| |
(c) | where the person had a reasonable excuse for the failure but the |
| 25 |
excuse has ceased, the person is to be treated as having continued to |
| |
have the excuse if the failure is remedied without unreasonable |
| |
delay after the excuse ceased. |
| |
| |
11 (1) | Where a senior accounting officer or a large company becomes liable for a |
| 30 |
penalty under this Schedule— |
| |
(a) | HMRC may assess the penalty, and |
| |
(b) | if they do so, they must notify the officer or company liable for the |
| |
| |
(2) | An assessment of a penalty under this Schedule for a failure in respect of a |
| 35 |
financial year, or an inaccuracy in a certificate for a financial year, may not |
| |
| |
(a) | more than 6 months after the failure or inaccuracy first comes to the |
| |
attention of an officer of Revenue and Customs, or |
| |
(b) | more than 6 years after the end of the period for filing the accounts |
| 40 |
| |
| |
12 (1) | A person may appeal against a decision of HMRC that a penalty is payable |
| |
| |
|
| |
|
| |
|
(2) | Notice of an appeal must be given— |
| |
| |
(b) | before the end of the period of 30 days beginning with the date on |
| |
which the notification under paragraph 11 was issued, and |
| |
| 5 |
(3) | Notice of an appeal must state the grounds of appeal. |
| |
(4) | On an appeal that is notified to the tribunal, the tribunal may confirm or |
| |
| |
(5) | Subject to this paragraph and paragraph 13, the provisions of Part 5 of TMA |
| |
1970 relating to appeals have effect in relation to appeals under this |
| 10 |
Schedule as they have effect in relation to an appeal against an assessment |
| |
| |
| |
13 (1) | A penalty under this Schedule must be paid— |
| |
(a) | before the end of the period of 30 days beginning with the date on |
| 15 |
which the notification under paragraph 11 was issued, or |
| |
(b) | if a notice of appeal against the penalty is given, before the end of the |
| |
period of 30 days beginning with the date on which the appeal is |
| |
| |
(2) | A penalty under this Schedule may be enforced as if it were income tax |
| 20 |
charged in an assessment and due and payable. |
| |
Power to change amount of penalties |
| |
14 (1) | If it appears to the Treasury that there has been a change in the value of |
| |
money since the last relevant date, they may by regulations substitute for the |
| |
sums for the time being specified in paragraphs 5, 6, 7 and 9 such other sums |
| 25 |
as appear to them to be justified by the change. |
| |
(2) | In sub-paragraph (1), in relation to a specified sum, “relevant date” means— |
| |
(a) | the date on which this Act is passed, and |
| |
(b) | in relation to that sum, each date on which the power conferred by |
| |
that sub-paragraph has been exercised. |
| 30 |
(3) | Regulations under this paragraph do not apply to— |
| |
(a) | a failure that occurs in respect of a financial year of a company that |
| |
begins before the date on which they come into force, or |
| |
(b) | an inaccuracy in a certificate that was provided to HMRC in respect |
| |
of such a financial year. |
| 35 |
Application of provisions of TMA 1970 |
| |
15 | Subject to the provisions of this Schedule, the following provisions of TMA |
| |
1970 apply for the purposes of this Schedule as they apply for the purposes |
| |
| |
(a) | section 108 (responsibility of company officers), |
| 40 |
(b) | section 114 (want of form), and |
| |
(c) | section 115 (delivery and service of documents). |
| |
|
| |
|
| |
|
Meaning of “appropriate tax accounting arrangements” |
| |
16 (1) | “Appropriate tax accounting arrangements” means accounting |
| |
arrangements that enable the liability to taxes and duties of the company |
| |
and its subsidiaries (if any) to be calculated accurately. |
| |
(2) | “Accounting arrangements” includes arrangements for keeping accounting |
| 5 |
| |
(3) | “Taxes and duties” means taxes and duties the collection and management |
| |
of which is the responsibility of the Commissioners. |
| |
Meaning of “large company” |
| |
17 (1) | “Large company”, in relation to a financial year, means a company that— |
| 10 |
(a) | does not qualify as small or medium-sized for the purposes of Part |
| |
15 of the Companies Act 2006 (accounts and reports) in relation to |
| |
that year (see sections 383 and 465 of that Act), and |
| |
(b) | is not, throughout that year, a member of a group headed by another |
| |
company that satisfies paragraph (a). |
| 15 |
(2) | The Treasury may by regulations provide that a company of a description |
| |
specified in the regulations is not a large company for the purposes of this |
| |
| |
Meaning of “senior accounting officer” |
| |
18 | “Senior accounting officer”, in relation to a company, means the director or |
| 20 |
officer of the company who has overall responsibility for the company’s |
| |
financial accounting arrangements. |
| |
| |
19 (1) | Regulations under this Schedule are to be made by statutory instrument. |
| |
(2) | A statutory instrument containing regulations under this Schedule is subject |
| 25 |
to annulment in pursuance of a resolution of the House of Commons. |
| |
| |
| |
“auditor” means an auditor appointed for the purposes of the |
| |
| 30 |
“auditor’s report” means the report that the auditor is required to make |
| |
to the company’s members under the Companies Act 2006; |
| |
“the Commissioners” means the Commissioners for Her Majesty’s |
| |
| |
“company” means a company within the meaning of the Companies |
| 35 |
| |
“financial year”, in relation to a company, has the same meaning as in |
| |
the Companies Act 2006 (see section 390 of that Act); |
| |
“group” has the same meaning as in Part 15 of the Companies Act 2006 |
| |
(accounts and reports) (see section 474 of that Act); |
| 40 |
“HMRC” means Her Majesty’s Revenue and Customs; |
| |
|
| |
|
| |
|
“period for filing”, in relation to accounts, has the same meaning as in |
| |
the Companies Acts (see section 442 of the Companies Act 2006); |
| |
“subsidiary” has the same meaning as in the Companies Acts (see |
| |
sections 1159 and 1160 of, and Schedule 6 to, the Companies Act |
| |
| 5 |
“tribunal” means the First-tier Tribunal or, where determined by or |
| |
under Tribunal Procedure Rules, the Upper Tribunal. |
| |
| |
| |
Amendment of information and inspection powers |
| |
1 | Schedule 36 to FA 2008 (information and inspection powers) is amended as |
| 10 |
| |
2 (1) | Paragraph 3 (approval etc of taxpayer notices and third party notices) is |
| |
| |
(2) | After sub-paragraph (2) insert— |
| |
“(2A) | An application for approval under this paragraph may be made |
| 15 |
without notice (except as required under sub-paragraph (3)).” |
| |
(3) | In sub-paragraph (3)(c), after “is” insert “to be”. |
| |
3 (1) | Paragraph 5 (power to obtain information and documents about persons |
| |
whose identity is not known) is amended as follows. |
| |
(2) | After sub-paragraph (3) insert— |
| 20 |
“(3A) | An application for approval under this paragraph may be made |
| |
| |
(3) | In sub-paragraph (4), for “give its approval for the purposes of” substitute |
| |
“approve the giving of a notice under”. |
| |
4 | In paragraph 6 (notices), insert at the end— |
| 25 |
“(4) | A decision of the tribunal under paragraph 3, 4 or 5 is final (despite |
| |
the provisions of sections 11 and 13 of the Tribunals, Courts and |
| |
| |
5 (1) | Paragraph 10 (power to inspect business premises etc) is amended as |
| |
| 30 |
(2) | In sub-paragraph (3), in the definition of “business assets”, for “, excluding |
| |
documents” substitute “(but see sub-paragraph (4))”. |
| |
(3) | After that sub-paragraph insert— |
| |
“(4) | For the purposes of this Schedule, “business assets” does not |
| |
include documents, other than— |
| 35 |
(a) | documents that are trading stock for the purposes of |
| |
Chapter 11A of Part 2 of ITTOIA 2005 (see section 172A of |
| |
| |
(b) | documents that are plant for the purposes of Part 2 of CAA |
| |
| 40 |
|
| |
|