|
| |
|
6 (1) | Paragraph 11 (power to inspect premises used in connection with taxable |
| |
supplies etc) is amended as follows. |
| |
(2) | In sub-paragraph (1)— |
| |
(a) | in paragraph (a), after “supplied” insert “or documents relating to |
| |
| 5 |
(b) | in paragraph (b), after “acquired” insert “or documents relating to |
| |
| |
(c) | in paragraph (c), after “as” insert “or in connection with”. |
| |
(3) | In sub-paragraph (2)(c), for “such goods” substitute “the supply of goods |
| |
under taxable supplies, the acquisition of goods from other member States |
| 10 |
under taxable aquisitions or fiscal warehousing”. |
| |
(4) | In sub-paragraph (4)— |
| |
(a) | for “sub-paragraph (1)” substitute “this paragraph”, and |
| |
(b) | for “in that sub-paragraph” substitute “here”. |
| |
7 | In paragraph 12(5) (carrying out inspections)— |
| 15 |
(a) | for “with the approval of” substitute “in respect of an inspection |
| |
| |
(b) | for “it is given with that approval” substitute “the inspection has |
| |
| |
8 (1) | In paragraph 13 (approval of inspections) is amended as follows. |
| 20 |
(2) | After sub-paragraph (1) insert— |
| |
“(1A) | An application for approval under this paragraph may be made |
| |
| |
| |
“(3) | A decision of the tribunal under this paragraph is final (despite the |
| 25 |
provisions of sections 11 and 13 of the Tribunals, Courts and |
| |
| |
9 (1) | Paragraph 21 (taxpayer notices) is amended as follows. |
| |
(2) | In sub-paragraph (6), after “that” (in the first place) insert “, as regards the |
| |
| 30 |
(3) | In sub-paragraph (7), for “that” (in the third place) substitute “the”. |
| |
(4) | In sub-paragraph (8)— |
| |
(a) | after “repayments” insert “of tax or withholding of income”, and |
| |
(b) | after “64(2)” insert “or (2A)”. |
| |
(5) | After sub-paragraph (8) insert— |
| 35 |
“(9) | In this paragraph, references to the person who made the return |
| |
are only to that person in the capacity in which the return was |
| |
| |
10 (1) | Paragraph 35 (special cases: groups of undertakings) is amended as follows. |
| |
(2) | In sub-paragraph (2)— |
| 40 |
(a) | for “paragraph 2” substitute “— |
| |
| |
|
| |
|
| |
|
(b) | insert at the end “, and |
| |
(b) | the references in paragraph 3(5) to naming the |
| |
taxpayer are to making that statement and naming |
| |
| |
(3) | For sub-paragraph (4) substitute— |
| 5 |
“(4) | Where a third party notice is given to the parent undertaking for |
| |
the purpose of checking the tax position of more than one |
| |
| |
(a) | paragraph 2(2) only requires the notice to state this, and |
| |
(b) | the references in paragraph 3(5) to naming the taxpayer are |
| 10 |
to making that statement. |
| |
(4A) | In relation to such a notice— |
| |
(a) | in paragraph 3 (approval etc of notices), sub-paragraphs |
| |
(1) and (3)(e) do not apply, |
| |
(b) | paragraph 4(1) (copying third party notices to taxpayer) |
| 15 |
| |
(c) | paragraph 21 (restrictions on giving taxpayer notice where |
| |
taxpayer has made return) applies as if the notice was a |
| |
taxpayer notice or taxpayer notices given to each |
| |
subsidiary undertaking (or, if the notice names the |
| 20 |
subsidiary undertakings to which it relates, to each of |
| |
| |
(d) | paragraph 30(1) (appeal) has effect as if it permitted an |
| |
appeal on any grounds, and |
| |
(e) | in paragraph 30(2) (no appeal in relation to taxpayer’s |
| 25 |
statutory records), the reference to the taxpayer has effect |
| |
as if it were a reference to the parent undertaking or any of |
| |
its subsidiary undertakings.” |
| |
(4) | In sub-paragraph (5), for the words after “the notice” substitute “— |
| |
(a) | sub-paragraphs (3) and (4) of that paragraph (approval of |
| 30 |
tribunal) have effect as if they permitted, but did not |
| |
require, the officer to obtain the approval of the tribunal, |
| |
| |
(b) | paragraph 31 (appeal) has effect as if it permitted an appeal |
| |
on any grounds, but the parent undertaking may not |
| 35 |
appeal against a requirement in the notice to produce any |
| |
document that forms part of the statutory records of the |
| |
parent undertaking or any of its subsidiary undertakings.” |
| |
(5) | Omit sub-paragraph (6). |
| |
11 (1) | Paragraph 37 (special cases: partnerships) is amended as follows. |
| 40 |
(2) | For sub-paragraph (2) substitute— |
| |
“(2) | Where, in respect of a chargeable period, any of the partners has— |
| |
(a) | made a tax return under section 12AA of TMA 1970 |
| |
(partnership returns), or |
| |
(b) | made a claim or election in accordance with section |
| 45 |
42(6)(b) of TMA 1970 (partnership claims and elections), |
| |
|
| |
|
| |
|
| paragraph 21 (restrictions where taxpayer has made tax return) |
| |
has effect as if that return, claim or election had been made by each |
| |
| |
(3) | In sub-paragraph (3)— |
| |
(a) | omit “to any person (other than one of the partners)”, |
| 5 |
(b) | for “paragraph 2” substitute “— |
| |
| |
(c) | insert at the end “, and |
| |
(b) | the references in paragraph 3(5) to naming the |
| |
taxpayer are to making that statement and naming |
| 10 |
| |
(4) | In sub-paragraph (4)— |
| |
(a) | after “notice” insert “given to a person other than one of the |
| |
| |
(b) | in paragraph (b), for “each of the partners” substitute “any of the |
| 15 |
partners in the partnership”. |
| |
(5) | For sub-paragraph (5) substitute— |
| |
“(5) | In relation to a third party notice given to one of the partners for |
| |
the purpose of checking the tax position of one or more of the |
| |
other partners (in their capacity as such)— |
| 20 |
(a) | in paragraph 3 (approval etc of notices), sub-paragraphs |
| |
(1) and (3)(e) do not apply, |
| |
(b) | paragraph 4(1) (copying third party notices to taxpayer) |
| |
| |
(c) | paragraph 30(1) (appeal) has effect as if it permitted an |
| 25 |
appeal on any grounds, and |
| |
(d) | in paragraph 30(2) (no appeal in relation to taxpayer’s |
| |
statutory records), the reference to the taxpayer has effect |
| |
as if it were a reference to any of the partners in the |
| |
| 30 |
(6) | In sub-paragraph (6) for the words after “the notice” substitute “— |
| |
(a) | sub-paragraphs (3) and (4) of that paragraph (approval of |
| |
tribunal) have effect as if they permitted, but did not |
| |
require, the officer to obtain the approval of the tribunal, |
| |
| 35 |
(b) | paragraph 31 (appeal) has effect as if it permitted an appeal |
| |
on any grounds, but the partner to whom the notice is |
| |
given may not appeal against a requirement in the notice |
| |
to produce any document that forms part of that partner’s |
| |
| 40 |
(7) | Omit sub-paragraph (7). |
| |
12 | After paragraph 37 insert— |
| |
“Information in connection with herd basis election |
| |
37A (1) | This paragraph applies to a taxpayer notice given to a person |
| |
carrying on a trade in relation to which a herd basis election is |
| 45 |
|
| |
|
| |
|
made if the notice refers only to information or documents that |
| |
| |
(a) | the animals kept for the purposes of the trade, or |
| |
(b) | the products of those animals. |
| |
(2) | Paragraph 21 (restrictions on giving taxpayer notice where |
| 5 |
taxpayer has made tax return) does not apply in relation to the |
| |
| |
(3) | “Herd basis election” means an election under Chapter 8 of Part 2 |
| |
of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009. |
| |
Information from persons liable to counteraction of tax advantage |
| 10 |
37B (1) | This paragraph applies to a taxpayer notice given to a person to |
| |
whom a counteraction provision applies by reason of one or more |
| |
transactions if the notice refers only to information or documents |
| |
relating to the transaction (or, if there are two or more |
| |
transactions, any of them). |
| 15 |
(2) | Paragraph 21 (restrictions on giving taxpayer notice where |
| |
taxpayer has made tax return) does not apply in relation to the |
| |
| |
(3) | “Counteraction provision” means— |
| |
(a) | section 703 of ICTA (company liable to counteraction of |
| 20 |
corporation tax advantage), or |
| |
(b) | section 684 of ITA 2007 (person liable to counteraction of |
| |
| |
13 (1) | Paragraph 39 (standard penalties) is amended as follows. |
| |
(2) | In sub-paragraph (2), for “A person to whom this paragraph applies” |
| 25 |
| |
| |
| |
(b) | insert at the end “for failure to comply or obstruction”. |
| |
14 | In the heading before paragraph 40 (daily default penalties), insert at the end |
| 30 |
“for failure to comply or obstruction”. |
| |
15 | After that paragraph insert— |
| |
“Penalties for inaccurate information and documents |
| |
40A (1) | This paragraph applies if— |
| |
(a) | in complying with an information notice, a person |
| 35 |
provides inaccurate information or produces a document |
| |
that contains an inaccuracy, and |
| |
(b) | condition A or B is met. |
| |
(2) | Condition A is that the inaccuracy is careless or deliberate. |
| |
(3) | An inaccuracy is careless if it is due to a failure by the person to |
| 40 |
| |
(4) | Condition B is that the person— |
| |
|
| |
|
| |
|
(a) | discovers the inaccuracy some time later, and |
| |
(b) | fails to take reasonable steps to inform HMRC. |
| |
(5) | The person is liable to a penalty not exceeding £3,000. |
| |
(6) | Where the information or document contains more than one |
| |
inaccuracy, a penalty is payable for each inaccuracy.” |
| 5 |
16 (1) | Paragraph 41 (power to change amount of penalties) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “and 40(2)” substitute “, 40(2) and 40A(5)”. |
| |
(3) | In sub-paragraph (2)— |
| |
(a) | after “(1)” insert “, in relation to a specified sum,”, and |
| |
(b) | in paragraph (b), insert at the end “in relation to that sum”. |
| 10 |
(4) | In sub-paragraph (3)— |
| |
| |
| |
(b) | insert at the end “, or |
| |
(b) | an inaccuracy in any information or document |
| 15 |
provided to HMRC before that date.” |
| |
(5) | Accordingly, in the heading omit “standard and daily default”. |
| |
17 (1) | Paragraph 46 (assessment of penalty) is amended as follows. |
| |
(2) | In sub-paragraph (1)— |
| |
(a) | for “or 40” substitute “, 40 or 40A”, |
| 20 |
| |
(c) | at the beginning of paragraph (a), insert “HMRC may”, and |
| |
(d) | at the beginning of paragraph (b), insert “if they do so, they must”. |
| |
(3) | In sub-paragraph (2), for “within 12 months of the relevant date” substitute |
| |
“within the period of 12 months beginning with the date on which the |
| 25 |
person became liable to the penalty, subject to sub-paragraph (3)”. |
| |
(4) | For sub-paragraph (3) substitute— |
| |
“(3) | In a case involving an information notice against which a person |
| |
may appeal, an assessment of a penalty under paragraph 39 or 40 |
| |
must be made within the period of 12 months beginning with the |
| 30 |
| |
(a) | the date on which the person became liable to the penalty, |
| |
(b) | the end of the period in which notice of an appeal against |
| |
the information notice could have been given, and |
| |
(c) | if notice of such an appeal is given, the date on which the |
| 35 |
appeal is determined or withdrawn. |
| |
(4) | An assessment of a penalty under paragraph 40A must be made— |
| |
(a) | within the period of 12 months beginning with the date on |
| |
which the inaccuracy first came to the attention of an |
| |
officer of Revenue and Customs, and |
| 40 |
(b) | within the period of 6 years beginning with the date on |
| |
which the person became liable to the penalty.” |
| |
(5) | Accordingly, in the heading omit “standard penalty or daily default”. |
| |
|
| |
|
| |
|
18 (1) | Paragraph 47 (right to appeal) is amended as follows. |
| |
(2) | In paragraph (a), for “or 40” substitute “, 40 or 40A”. |
| |
(3) | Accordingly, in the heading, omit “standard penalty or daily default”. |
| |
19 | In the heading before paragraph 48 (procedure on appeal), omit “standard or |
| |
| 5 |
20 (1) | Paragraph 49 (enforcement) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “or 40” substitute “, 40 or 40A”. |
| |
(3) | In sub-paragraph (2), for “or 40” substitute “, 40 or 40A”. |
| |
(4) | Accordingly, in the heading, omit “standard penalty or daily default”. |
| |
21 (1) | Paragraph 63 (tax) is amended as follows. |
| 10 |
(2) | In sub-paragraph (3)— |
| |
(a) | omit the “and” at the end of paragraph (a), and |
| |
(b) | for the words following paragraph (b) substitute “, and |
| |
(c) | amounts listed in sub-paragraph (3A).” |
| |
(3) | After that sub-paragraph insert— |
| 15 |
| |
(a) | any amount that is recoverable under paragraph 5(2) of |
| |
Schedule 11 to VATA 1994 (amounts shown on invoices as |
| |
| |
(b) | any amount that is treated as VAT by virtue of regulations |
| 20 |
under section 54 of VATA 1994 (farmers etc).” |
| |
22 (1) | Paragraph 64 (tax position) is amended as follows. |
| |
(2) | In sub-paragraph (1)(c), after “with” insert “the person’s liability to pay”. |
| |
(3) | After sub-paragraph (2) insert— |
| |
“(2A) | References in this Schedule to a person’s tax position also include, |
| 25 |
where appropriate, a reference to the person’s position as regards |
| |
the withholding by the person of another person’s PAYE income |
| |
(as defined in section 683 of ITEPA 2003).” |
| |
| |
| |
Extension of information and inspection powers |
| 30 |
1 | Schedule 36 to FA 2008 (information and inspection powers) is amended as |
| |
| |
2 | In paragraph 5(4)(b) (power to obtain information and documents about |
| |
persons whose identity is not known), for the words from “, VATA 1994” to |
| |
the end substitute “or any other enactment relating to UK tax”. |
| 35 |
|
| |
|
| |
|
3 | After paragraph 10 insert— |
| |
“Power to inspect business premises etc of involved third parties |
| |
10A (1) | An officer of Revenue and Customs may enter business premises |
| |
of an involved third party (see paragraph 61A) and inspect— |
| |
| 5 |
(b) | business assets that are on the premises, and |
| |
(c) | relevant documents that are on the premises, |
| |
| if the inspection is reasonably required by the officer for the |
| |
purpose of checking the position of any person or class of persons |
| |
as regards a relevant tax. |
| 10 |
(2) | The powers under this paragraph may be exercised whether or not |
| |
the identity of that person is, or the individual identities of those |
| |
persons are, known to the officer. |
| |
(3) | The powers under this paragraph do not include power to enter or |
| |
inspect any part of the premises that is used solely as a dwelling. |
| 15 |
(4) | In relation to an involved third party, “relevant documents” and |
| |
“relevant tax” are defined in paragraph 61A.” |
| |
4 (1) | Paragraph 12 (carrying out inspections) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “this Part of this Schedule” substitute “paragraph |
| |
| 20 |
(3) | Accordingly, in the heading, insert at the end “under paragraph 10, 10A or 11”. |
| |
5 | After that paragraph insert— |
| |
“Powers to inspect property for valuation etc |
| |
12A (1) | An officer of Revenue and Customs may enter and inspect |
| |
premises for the purpose of valuing the premises if the valuation |
| 25 |
is reasonably required for the purpose of checking any person’s |
| |
position as regards income tax or corporation tax. |
| |
(2) | An officer of Revenue and Customs may enter premises and |
| |
| |
| 30 |
(b) | any other property on the premises, |
| |
| for the purpose of valuing, measuring or determining the |
| |
character of the premises or property. |
| |
(3) | Sub-paragraph (2) only applies if the valuation, measurement or |
| |
determination is reasonably required for the purpose of checking |
| 35 |
any person’s position as regards— |
| |
| |
(b) | corporation tax in respect of chargeable gains, |
| |
| |
(d) | stamp duty land tax, or |
| 40 |
(e) | stamp duty reserve tax. |
| |
|
| |
|