|
| |
|
| |
20 | In this Schedule “qualifying oil field” means an oil field that is, on the |
| |
| |
| |
(b) | an ultra heavy oil field, or |
| 5 |
(c) | an ultra high pressure/high temperature oil field. |
| |
| |
21 (1) | In this Schedule “small oil field” means an oil field which has reserves of oil |
| |
of 3,500,000 tonnes or less. |
| |
(2) | For the purposes of this paragraph and paragraph 24(2)— |
| 10 |
(a) | the amount of reserves of oil which an oil field has is to be |
| |
determined on the authorisation day; |
| |
(b) | 1,100 cubic metres of gas at a temperature of 15 degrees celsius and |
| |
pressure of one atmosphere is to be counted as equivalent to one |
| |
| 15 |
| |
22 (1) | In this Schedule “ultra heavy oil field” means an oil field with oil at— |
| |
(a) | an API gravity below 18 degrees, and |
| |
(b) | a viscosity of more than 50 centipoise at reservoir temperature and |
| |
| 20 |
(2) | For that purpose API gravity, in relation to oil, is the amount determined by |
| |
the following calculation—![equation: plus[over[num[141.5000000000000000,"141.5"],char[G]],minus[num[131.5000000000000000,
"131.5"]]]](missing.gif) |
| |
| where G is the specific gravity of the oil at 15.56 degrees celsius. |
| |
Ultra high pressure/high temperature oil field |
| |
23 | In this Schedule “ultra high pressure/high temperature oil field” means an |
| 25 |
| |
(a) | a pressure of more than 1034 bar in the reservoir formation, and |
| |
(b) | a temperature of more than 176.67 degrees celsius in the reservoir |
| |
| |
Total field allowance for new oil field |
| 30 |
24 (1) | For the purposes of this Schedule, the total field allowance for a new oil field |
| |
| |
(a) | in the case of a small oil field, the amount determined in accordance |
| |
| |
(b) | in the case of an ultra heavy oil field, £800,000,000, and |
| 35 |
(c) | in the case of an ultra high pressure/high temperature oil field, |
| |
| |
(2) | The total field allowance for a small oil field is— |
| |
|
| |
|
| |
|
(a) | if the oil field has reserves of oil of 2,750,000 tonnes or less, |
| |
| |
(b) | in any other case (where the oil field has reserves of more than |
| |
2,750,000 tonnes but not more than 3,500,000 tonnes), the following |
| |
amount—![equation: cross[string["\xa3 75,000,000"],over[plus[string["3,500,000"],minus[char[X]]],plus[string[
"3,500,000"],minus[string["2,750,000"]]]]]](missing.gif) |
| 5 |
| where X is the amount of the reserves of oil (in tonnes) which the oil |
| |
| |
| |
| |
“adjusted ring fence profits”, in relation to a company and an |
| 10 |
accounting period, means the adjusted ring fence profits that would |
| |
(if this Schedule were ignored) be taken into account in calculating |
| |
the supplementary charge on the company under section 501A of |
| |
ICTA for the accounting period; |
| |
“authorisation day”, in relation to a new oil field, means the day when |
| 15 |
development of the field is authorised; |
| |
“initial licensee”, in relation to a new oil field, means a company that is |
| |
licensee in the field on the authorisation day. |
| |
“licensee” has the same meaning as in Part 1 of OTA 1975; |
| |
“oil” has the same meaning as in Part 1 of OTA 1975; |
| 20 |
“oil field” has the same meaning as in Part 1 of OTA 1975; |
| |
“relevant income”, in relation to a new oil field and an accounting |
| |
period of a company, means production income of the company |
| |
from any oil extraction activities carried on in the field that is taken |
| |
into account in calculating the company’s adjusted ring fence profits |
| 25 |
for the accounting period. |
| |
| |
| |
Oil: miscellaneous amendments |
| |
| |
1 (1) | OTA 1975 is amended as follows. |
| 30 |
(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 |
| 35 |
| |
(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. |
| |
(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— |
| 5 |
(a) | in subsection (2) of that section, for “subsections (3) and (4)” |
| |
substitute “subsection (4)”, and |
| |
(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 |
| 10 |
expenditure incurred on or before 31 December 1983). |
| |
| |
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”— |
| 15 |
(a) | section 6(1A) of OTA 1975, |
| |
(b) | paragraph 15(9A) of Schedule 17 to FA 1980, and |
| |
(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 |
| 20 |
words from “but” to the end. |
| |
(2) | The repeal made by this paragraph has effect on and after 22 April 2009. |
| |
| |
| |
Duties of senior accounting officers of qualifying companies |
| |
Main duty of senior accounting officer |
| 25 |
1 (1) | The senior accounting officer of a qualifying company must take reasonable |
| |
steps to ensure that the company establishes and maintains appropriate tax |
| |
| |
(2) | The senior accounting officer of a qualifying company must, in particular, |
| |
| 30 |
(a) | to monitor the accounting arrangements of the company, and |
| |
(b) | to identify any respects in which those arrangements are not |
| |
appropriate tax accounting arrangements. |
| |
Certificate for Commissioners |
| |
2 (1) | The senior accounting officer of a qualifying company must provide the |
| 35 |
Commissioners with a certificate for each financial year of the company. |
| |
|
| |
|
| |
|
(2) | The certificate must— |
| |
(a) | state whether the company had appropriate tax accounting |
| |
arrangements throughout the financial year, and |
| |
(b) | if it did not, give an explanation of the respects in which the |
| |
accounting arrangements of the company were not appropriate tax |
| 5 |
| |
(3) | 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 |
| |
(b) | not later than the end of the period for filing the company’s accounts |
| 10 |
for the financial year (or such later time as an officer of Revenue and |
| |
Customs may have allowed). |
| |
(4) | A certificate may relate to more than one qualifying company. |
| |
Notifying Commissioners of name of senior accounting officer |
| |
3 (1) | For each financial year a qualifying company must ensure that the |
| 15 |
Commissioners are notified of the name of each person who was its senior |
| |
accounting officer at any time during the year. |
| |
(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 |
| 20 |
(b) | not later than the end of the period for filing the company’s 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 |
| |
financial year under paragraph 2). |
| |
(3) | A notification may relate to more than one qualifying company. |
| 25 |
Penalty for failure to comply with main duty |
| |
4 (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. |
| |
(3) | A person is not liable to more than one penalty under this paragraph in |
| 30 |
respect of the same company and the same financial year. |
| |
Penalties for failure to provide certificate etc |
| |
5 (1) | This paragraph applies if a senior accounting officer— |
| |
(a) | fails to provide a certificate in accordance with paragraph 2, or |
| |
(b) | provides a certificate in accordance with that paragraph that |
| 35 |
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 |
| 40 |
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 |
| |
6 (1) | This paragraph applies if the identity of the senior accounting officer of a |
| |
| 5 |
(2) | If (but for this sub-paragraph) more than one person would be liable to a |
| |
penalty under paragraph 4 in respect of a financial year of the company, |
| |
only the one who became the senior accounting officer latest in the year is |
| |
liable to such a penalty. |
| |
(3) | If a person who is or has been the senior accounting officer of the company |
| 10 |
complies, or purports to comply, with paragraph 2 in respect of a financial |
| |
year, no other person is liable to a penalty under paragraph 5 in respect of |
| |
that company and that financial year. |
| |
(4) | A person who is replaced as the senior accounting officer of the company |
| |
before the last day for compliance with paragraph 2 in respect of a financial |
| 15 |
year is not liable to a penalty under paragraph 5(1)(a) for failing to comply |
| |
with that paragraph in respect of that company and that financial year. |
| |
Penalty for failure to notify Commissioners of name of senior accounting officer |
| |
7 | A qualifying company is liable to a penalty of £5,000 if, for a financial year, |
| |
the Commissioners are not notified of the name or names of its senior |
| 20 |
accounting officer or officers in accordance with paragraph 3. |
| |
| |
8 (1) | Liability to a penalty for a failure to comply with this Schedule does not arise |
| |
if the senior accounting officer or qualifying company satisfies HMRC or (on |
| |
an appeal notified to the tribunal) the tribunal that there is a reasonable |
| 25 |
| |
(2) | For the purposes of this paragraph— |
| |
(a) | an insufficiency of funds is not a reasonable excuse unless |
| |
attributable to events outside the person’s control, |
| |
(b) | where the person relies on any other person to do anything, that is |
| 30 |
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 |
| |
excuse has ceased, the person is to be treated as having continued to |
| |
have the excuse if the failure is remedied without unreasonable |
| 35 |
delay after the excuse ceased. |
| |
| |
9 (1) | Where a senior accounting officer or a qualifying company becomes liable |
| |
for a penalty under this Schedule— |
| |
(a) | HMRC may assess the penalty, and |
| 40 |
(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 |
| |
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 |
| 5 |
(b) | more than 6 years after the end of the period for filing the company’s |
| |
accounts for the financial year. |
| |
(3) | HMRC may not assess a person who is the senior accounting officer of a |
| |
company (“C”) as liable to a penalty under paragraph 4 or 5 for a financial |
| |
year (“the relevant financial year”) if— |
| 10 |
(a) | at any time in the relevant financial year the person was the senior |
| |
accounting officer of another company that was a member of the |
| |
| |
(b) | HMRC has assessed the person as liable, as the senior accounting |
| |
officer of the other company, to a penalty under that paragraph for a |
| 15 |
financial year that ends on a day in the relevant financial year. |
| |
(4) | HMRC may not assess a company (“C”) as liable to a penalty under |
| |
paragraph 7 for a financial year (“the relevant financial year”) if— |
| |
(a) | C was a member of a group at the end of that year, and |
| |
(b) | HMRC has assessed another company that was a member of the |
| 20 |
same group as C at that time as liable to a penalty under that |
| |
| |
(i) | for its financial year ending on the same day as the relevant |
| |
| |
(ii) | if its financial year does not end on that day, for its financial |
| 25 |
year ending last before that day. |
| |
| |
10 (1) | A person may appeal against a decision of HMRC that a penalty is payable |
| |
| |
(2) | Notice of an appeal must be given— |
| 30 |
| |
(b) | before the end of the period of 30 days beginning with the date on |
| |
which the notification under paragraph 9 was issued, and |
| |
| |
(3) | Notice of an appeal must state the grounds of appeal. |
| 35 |
(4) | On an appeal that is notified to the tribunal, the tribunal may confirm or |
| |
| |
(5) | Subject to this paragraph and paragraph 11, the provisions of Part 5 of TMA |
| |
1970 relating to appeals have effect in relation to appeals under this |
| |
Schedule as they have effect in relation to an appeal against an assessment |
| 40 |
| |
| |
11 (1) | A penalty under this Schedule must be paid— |
| |
(a) | before the end of the period of 30 days beginning with the date on |
| |
which the notification under paragraph 9 was issued, or |
| 45 |
|
| |
|
| |
|
(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 |
| |
charged in an assessment and due and payable. |
| 5 |
Power to change amount of penalties |
| |
12 (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 4, 5 and 7 such other sums |
| |
as appear to them to be justified by the change. |
| 10 |
(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. |
| |
(3) | Regulations under this paragraph do not apply to— |
| 15 |
(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. |
| |
Application of provisions of TMA 1970 |
| 20 |
13 | 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), |
| |
(b) | section 114 (want of form), and |
| 25 |
(c) | section 115 (delivery and service of documents). |
| |
Meaning of “appropriate tax accounting arrangements” |
| |
14 (1) | “Appropriate tax accounting arrangements” means accounting |
| |
arrangements that enable the company’s relevant liabilities to be calculated |
| |
accurately in all material respects. |
| 30 |
(2) | “Accounting arrangements” includes arrangements for keeping accounting |
| |
| |
(3) | “Relevant liabilities”, in relation to a company, means liabilities in respect |
| |
| |
(a) | corporation tax (including any amount assessable or chargeable as if |
| 35 |
it were corporation tax), |
| |
| |
(c) | amounts for which the company is accountable under PAYE |
| |
| |
(d) | insurance premium tax, |
| 40 |
| |
(f) | stamp duty reserve tax, |
| |
(g) | petroleum revenue tax, |
| |
|
| |
|